India’s Core Sector Growth Hits 8-Month Low in April 2025

India’s core infrastructure sector recorded a sharp slowdown in April 2025, with growth plunging to just 0.5%, marking its lowest level in eight months. The contraction was primarily driven by declines in key sectors like refinery products, fertilisers, and crude oil, with only coal and natural gas showing modest gains. This slump, coupled with a high base effect from April 2024 (6.9% growth), raises concerns about the health of industrial activity in the country.

Why in News?

The Ministry of Commerce and Industry released data showing that India’s Index of Core Industries (ICI) — which accounts for 40.27% of the overall Index of Industrial Production (IIP) — rose only 0.5% in April 2025. This is a significant drop compared to 4.6% in March 2025 and 6.9% in April 2024, highlighting sluggish momentum in the economy’s key sectors.

Key Highlights

  • April 2025 ICI growth: 0.5% (8-month low)
  • March 2025 ICI (revised): 4.6%
  • April 2024 ICI: 6.9%

Sector-wise Performance

  • Cement: +6.7% (but lowest in 6 months)
  • Steel: +3%
  • Electricity: +1% (7-month low)
  • Coal: +3.5% (3-month high)
  • Natural Gas: +0.4% (first growth in 10 months)
  • Crude Oil: -2.8% (4th straight contraction)
  • Refinery Products: -4.5% (sharpest since Nov 2022)
  • Fertilisers: -4.2% (1st contraction in 11 months)

Expert Views

  • India Ratings and Research: Core sector pulled down by Tariff Tantrums, high base; IIP for April may drop to 1–2%.
  • Bank of Baroda: Core growth disappointing; expects IIP to be 1–1.5%.
  • ICRA: Predicts IIP around 1% due to weak core data, though non-oil exports may offer some cushion.

Static Facts:

The eight core industries include,

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

These account for 40.27% of IIP.

Significance

  • A sharp drop in core sector growth is a leading indicator of industrial slowdown, and has implications for GDP growth, monetary policy, and investment sentiment.
  • Highlights fragility in India’s recovery and pressure on the manufacturing and infrastructure sectors amid global and domestic uncertainties.

Shivam

As a Content Executive Writer at Adda247, I am dedicated to helping students stay ahead in their competitive exam preparation by providing clear, engaging, and insightful coverage of both major and minor current affairs. With a keen focus on trends and developments that can be crucial for exams, researches and presents daily news in a way that equips aspirants with the knowledge and confidence they need to excel. Through well-crafted content, Its my duty to ensures that learners remain informed, prepared, and ready to tackle any current affairs-related questions in their exams.

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