India’s industrial performance showed steady growth in September 2025, with the Index of Eight Core Industries (ICI) registering a 3% increase compared to the same month last year. The improvement was largely driven by strong performances in the steel and cement sectors, reflecting India’s continued focus on infrastructure and construction-led development. However, the overall pace of growth remained moderate due to declines in key energy-related sectors such as coal, crude oil, and natural gas.
The eight core industries—coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity—form the backbone of India’s industrial output, accounting for over 40% of the country’s total industrial production. The September data offers a mixed picture, highlighting strong momentum in construction materials while signaling caution in energy and fuel segments.
Steel stood out as the top performer with an impressive 14.1% growth in production, driven by high demand from infrastructure, automobile, and manufacturing sectors. The sector’s strong performance reflects the government’s ongoing push for infrastructure expansion and industrial growth across various states. Cement production also increased by 5.3%, supported by rising construction activity across both public and private projects. The demand for building materials remains robust, indicating confidence in India’s ongoing urban development and housing projects.
Electricity generation grew by 2.1% in September, maintaining stability in power supply and signaling consistent industrial and household demand. Fertilizer production also inched up by 1.6%, marking a seasonal recovery ahead of the Rabi cropping season, though overall growth in the first half of the year remains slightly negative.
On the downside, energy sectors witnessed noticeable slowdowns. Coal production fell by 1.2% due to reduced demand from thermal power plants. Crude oil production declined by 1.3%, continuing its downward trajectory as domestic oil fields struggle with stagnation. Natural gas output decreased by 3.8%, further tightening energy supply for key industries like power and fertilizers. Refinery products too saw a 3.7% drop, reflecting subdued throughput and global market uncertainties.
For the April–September 2025–26 period, the cumulative growth of the core industries stood at 2.9%, indicating stable yet uneven progress. While sectors like steel and cement continue to anchor India’s industrial rebound, the energy slowdown remains a concern that could impact input costs and supply chain efficiency. Policymakers are expected to focus on improving energy output and refining capacity to ensure more balanced growth across sectors.
The latest figures suggest a cautiously optimistic outlook for India’s industrial economy. With infrastructure projects driving demand for construction materials, the industrial base appears solid, though the uneven energy performance poses challenges. Continued government focus on “Make in India,” renewable energy expansion, and public infrastructure investment could help sustain this growth trajectory in the coming months.
The September data highlights a clear industrial divide — materials and manufacturing are surging ahead, while fuel and energy sectors need renewed attention. For businesses, it’s a signal to align with infrastructure-driven opportunities while maintaining vigilance over energy and raw material costs. As India pushes forward with its economic transformation, balanced growth across these core sectors will be crucial to sustaining the country’s industrial momentum.