India’s core infrastructure sector posted a year-on-year growth of 3.7% in December 2025, driven by strong performance in key segments such as cement, steel, coal, electricity, and fertilisers, according to data released by the Ministry of Commerce & Industry.
The Index of Eight Core Industries (ICI), which measures output across coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity, increased to 175.7 points in December 2025 from 169.4 points in the same month a year earlier. These core industries collectively account for 40.27% of the Index of Industrial Production (IIP), making them a critical barometer of the country’s industrial health.
Strong Gains in Construction-Linked Sectors
Cement emerged as the top-performing sector, registering a robust 13.5% expansion, reflecting sustained activity in construction and infrastructure projects. Steel production also showed healthy growth, rising 6.9% year-on-year, while electricity generation increased by 5.3%, indicating stable demand across industries.
Coal output grew by 3.6% during the month, and fertiliser production expanded 4.1%, supporting agricultural and industrial requirements.
Energy Segments Remain Under Pressure
In contrast, the energy-related segments recorded a subdued performance. Crude oil production declined sharply by 5.6%, while natural gas output fell 4.4%. Refinery products also saw a slight contraction of 1% in December 2025, highlighting ongoing challenges in the hydrocarbons sector.
Cumulative Trends and Data Revisions
The ministry revised the final growth figure for November 2025 upward to 2.1%. For the April–December period of FY2025–26, core sector output recorded a provisional growth of 2.6% compared to the corresponding period last year.
Looking at cumulative performance so far in the financial year, steel production led with a growth of 9.5%, followed by cement at 8.8% and fertilisers at 1.7%. Electricity generation edged up marginally by 0.3%, while coal production declined 0.7%. Crude oil and natural gas output continued to shrink, falling 1.9% and 3.2%, respectively.
Summary
India’s core infrastructure industries grew 3.7% in December 2025, supported by strong gains in cement, steel, electricity, coal, and fertilisers. While construction-linked sectors showed robust momentum, crude oil, natural gas, and refinery products remained under pressure. Overall, the core sector recorded a cumulative growth of 2.6% during April–December FY26, underscoring steady but uneven industrial expansion.
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