Core Sector Grows 2% in July, Steel and Cement Lead Recovery

The output of India’s eight key infrastructure industries rose by 2% in July 2025 compared to the same month last year, according to data released by the Ministry of Commerce and Industry. The latest numbers show that while steel and cement registered double-digit growth, several energy-linked sectors continued to drag overall performance.

The Eight Core Industries — coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity — together account for 40.27% of the weight of the Index of Industrial Production (IIP).

Mixed Performance Across Sectors

Steel and cement stood out as the strongest performers, posting growth of 12.8% and 11.7% respectively in July. Their cumulative output during April–July of FY26 also rose sharply, with steel up 8.5% and cement up 8.9%. Fertilizer production increased modestly by 2% in July, while electricity generation edged higher by 0.5%.

On the downside, coal output dropped 12.3% year-on-year, marking the steepest fall among the core sectors. Crude oil production also contracted by 1.3%, natural gas by 3.2%, and refinery products by 1%. For the April–July period, coal output fell 3.1%, crude oil 1.7%, and natural gas 2.6%, highlighting persistent supply challenges.

Also Read: E-commerce & Policy Push to Drive India’s Express Logistics to $22 Bn by 2030: KPMG Report | Republic World

Cumulative Trends

Despite the July uptick, the overall picture for the first four months of FY26 shows uneven progress. Fertilizer output is down 2.2% so far, this fiscal, while electricity generation has slipped 1%. Refinery products are nearly flat, down just 0.3%.

Outlook

Economists note that robust demand in the construction sector is driving steel and cement growth, offering some cushion to the weak energy segment. However, sustained declines in coal, crude, and gas production remain a concern, especially as they weigh heavily on the energy supply chain. The next set of core sector data, covering August 2025, will be released on September 22.