New Delhi: Growth in India’s eight core infrastructure industries accelerated to 3.7% in December 2025, aided by strong expansion in cement, steel and electricity production, even as output of crude oil, natural gas and refinery products remained under pressure, data released by the Ministry of Commerce and Industry showed on Tuesday.
The Index of Eight Core Industries (ICI), which tracks coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, carries a weight of 40.27% in the Index of Industrial Production (IIP) and is seen as a key indicator of overall industrial momentum. November’s growth was revised to 2.1%, while cumulative growth for April–December 2025-26 stood at 2.6%.
Among the outperformers, cement production rose sharply by 13.5% year-on-year, reflecting sustained infrastructure activity and housing demand. Steel output increased 6.9%, supported by public capex and construction-led demand, while electricity generation grew 5.3%, indicating steady power consumption during the month. Coal production also registered a 3.6% increase, offering some relief on the supply side.
In contrast, the hydrocarbons segment continued to act as a drag on overall growth. Crude oil production declined 5.6%, while natural gas output fell 4.4% during December. Refinery products contracted 1%, underscoring structural challenges in domestic hydrocarbon output despite marginal cumulative growth in refinery activity during the fiscal so far.
Fertiliser production rose 4.1%, aided by rabi season demand, adding to the positive momentum in select manufacturing-linked sectors. On a cumulative basis, steel and cement remained the strongest contributors, growing 9.5% and 8.8%, respectively, during April–December.
The divergence within core sectors highlights the uneven nature of India’s industrial recovery, with infrastructure- and construction-linked industries benefiting from government spending, while energy production continues to lag due to declining domestic output.
The government will release core sector data for January 2026 on February 20, 2026.