India’s Core Sector Growth Rises to 1.7% in June 2025
India’s eight core infrastructure industries recorded a 1.7% growth in June 2025, a modest rise compared to May’s revised figure of 1.2%. Despite being significantly lower than the 5% growth in June 2024, the increase marks a three-month high, reflecting a mixed trend in industrial output.
The Index of Core Industries (ICI) measures the performance of eight key infrastructure sectors: coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity. These sectors together constitute 40.27% of the total weight in the Index of Industrial Production (IIP). The ICI is released by the Ministry of Commerce and Industry.
In June 2025, five of the eight core sectors saw negative output growth,
However, refinery products grew by 3.4%, while steel and cement recorded robust growth of 9.3% and 9.2%, respectively. These positive performers lifted the overall index despite the drag from other sectors.
For the April-June quarter of FY 2025-26, the core sector posted a 1.3% growth, a sharp decline from the 6.2% expansion in the same period last year. This slowdown indicates a broader weakness in industrial and infrastructure activity early in the fiscal year.
The core sector’s performance is a crucial indicator for overall industrial growth, directly influencing GDP estimates, monetary policy decisions, and investor sentiment. A decline in energy and fertilizer output could affect agriculture and power-dependent industries, while growth in steel and cement signals construction and infrastructure activity.
The contraction in electricity and energy-related sectors highlights ongoing challenges such as,
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