India’s Core Industries Grow 6.3% in August 2025

India’s industrial performance received a significant boost in August 2025, with the Index of Eight Core Industries (ICI) registering a robust 6.3% year-on-year growth. This growth marks the highest in over a year, reflecting positive momentum in the infrastructure and manufacturing sectors. The data, released by the Ministry of Commerce and Industry, highlights key improvements in steel, coal, cement, fertilizers, and electricity, while also indicating continued challenges in crude oil and natural gas production.

The ICI is not only a key economic indicator but also carries high importance in competitive exams, as it accounts for over 40% of the Index of Industrial Production (IIP) — making its trends crucial for understanding the broader industrial scenario.

What is the Index of Eight Core Industries (ICI)?

The ICI measures the production performance of eight foundational industries that are critical to the Indian economy. These sectors are,

1. Coal
2. Crude Oil
3. Natural Gas
4. Refinery Products
5. Fertilizers
6. Steel
7. Cement
8. Electricity

These industries have a combined weight of 40.27% in the overall Index of Industrial Production (IIP). Because of this large weight, any rise or fall in the ICI directly influences the IIP and reflects the health of India’s industrial base.

August 2025 Performance: Key Highlights

The month of August showed an impressive rebound in industrial performance compared to the previous year. Here’s a sector-wise breakdown:

Strong Performers

Steel

• Registered a 14.2% growth, the highest among all sectors.
• Cumulative growth (April–August 2025–26) was also strong at 10.4%.
• Growth driven by increased infrastructure demand and favorable policies.
• Coal
• Posted 11.4% growth in August 2025.
• However, cumulative growth for the fiscal period so far declined slightly by 0.7%, showing uneven production.

Cement

• Continued its upward trend with a 6.1% rise.
• Cumulative growth stood at a healthy 8.4%, reflecting revival in construction and real estate.

Fertilizers

• Grew by 4.6% in August.
• Despite the monthly rise, cumulative production is down 0.8%, pointing to inconsistent output.

Electricity

• Grew 3.1% in August, contributing positively.
• Cumulative growth is low at 0.5%, indicating fluctuating generation patterns.

Modest Performer

Petroleum Refinery Products

• Registered a 3.0% increase in August 2025.
• Cumulative growth remains modest at 0.4%, showing marginal improvement.

Declining Sectors

Crude Oil

• Declined 1.2% in August, with cumulative decline at 1.7%.
• Indicates continued challenges in domestic extraction.

Natural Gas

• Fell by 2.2% in August.
• Cumulative decline stood at 2.5%, reflecting supply and exploration issues.

Positive Takeaways

• The 6.3% growth in August is the highest in over 13 months, showing a strong industrial rebound.
• The growth is largely driven by infrastructure-related sectors, which may indicate higher capital expenditure and government push on infrastructure projects.
• The steel and cement boom suggests momentum in construction, road, and real estate sectors.

Areas of Concern

• Persistent declines in crude oil and natural gas show India’s continued dependence on imports and challenges in domestic exploration.
• Cumulative growth for April–August stands at just 2.8%, much lower than desired for sustainable industrial revival.

Static Facts

• The Index of Eight Core Industries (ICI) was introduced in 2004–05, with the latest base year revised to 2011–12 = 100.
• The ICI contributes 40.27% to the Index of Industrial Production (IIP).
• The sector with the highest weight in the ICI is Refinery Products (28.04%), followed by Electricity (19.85%) and Steel (17.92%).
• The ICI data is released monthly by the Office of Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT).
• From April 2014, electricity data includes renewable sources.