India’s core sector output — measured by the Index of Eight Core Industries (ICI) — registered a modest growth of 0.7% year-on-year in May 2025, according to data released by the Ministry of Commerce & Industry. The eight industries together hold a weightage of 40.27% in the Index of Industrial Production (IIP).
Key Highlights:
Positive growth was recorded in the production of Cement, Steel, Coal, and Refinery Products, while other sectors showed contraction.
The cumulative growth for April–May 2025-26 stood at 3.1%, compared to the same period last year.
Sector-Wise Performance in May 2025:
- Coal (Weight: 10.33%): Output rose by 2.8% YoY; cumulative growth for April-May stood at 3.1%.
- Crude Oil: Output declined by 1.8% YoY; cumulative index fell by 2.2%.
- Natural Gas: Declined by 3.6% YoY; cumulative decline of 2.3%.
- Refinery Products (Highest Weight): Grew 1.1% YoY, but the April-May cumulative index slipped by 1.7%.
- Fertilisers: Slumped 5.9% YoY; cumulative decline of 5.1%.
- Steel: Jumped 6.7% YoY; cumulative growth at 5.5%.
- Cement: Strong growth of 9.2% YoY; cumulative index up 7.8%.
- Electricity: Contracted by 5.8% YoY; cumulative drop of 2.2%.
The performance of core industries often serves as a leading indicator for the country’s overall industrial output. Despite muted overall growth, robust performance in infrastructure-linked sectors like cement and steel suggests a steady undercurrent of construction and industrial activity. However, declines in energy-related segments like electricity, crude, and natural gas signal areas of concern for policymakers and industry watchers.
