India’s Core Industries Expand at Fastest Pace Since August at 3.7%

India’s eight core infrastructure industries expanded by 3.7% year-on-year in December, according to provisional government data, marking the highest growth rate since August.

The performance represents a clear acceleration from 2.1% growth recorded in November, reflecting improved activity across construction-linked and power-related segments.

The eight core industries, coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity, together account for 40.27% of the weight of the Index of Industrial Production (IIP).

Cement, Steel, and Power Lead Growth 

Among the eight sectors, cement output rose 13.5%, the strongest growth in December, supported by sustained construction and infrastructure activity.

Steel production increased 6.9%, while electricity generation expanded 5.3%, reflecting steady demand from industrial and commercial users.

Other sectors posting growth included:

• Fertilisers, up 4.1%

• Coal, up 3.6%

These gains more than offset contractions in energy-related segments.

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Oil, Gas, and Refinery Output Decline 

Production in hydrocarbons remained under pressure during the month:

• Crude oil output declined 5.6%

• Natural gas production fell 4.4%

• Refinery products output slipped 1.0%

The continued contraction in these segments limited the overall pace of expansion in the core sector basket.

Comparison With Previous Periods 

December’s 3.7% growth compares with 5.1% growth recorded in December last year, indicating a moderation on an annual basis despite the month-on-month improvement.

For the April–December period of the current financial year, core sector output grew 2.6%, lower than the 4.5% expansion recorded in the corresponding period a year earlier.

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