What Does 3% Growth Mean for India's Core Sector in Sept 2025?

India's Index of Eight Core Industries (ICI) rose by 3 per cent in September 2025 compared to the same month last year, driven by strong performances in steel, cement, electricity, and fertilisers, according to provisional data released by the Ministry of Commerce and Industry.

Given that the ICI accounts for over 40% of the weight in the overall Index of Industrial Production (IIP), this 3% rise points toward a positive, yet mixed, performance for the industrial sector, tempered by declines observed across the key energy sectors, including crude oil, natural gas, and petroleum refinery products.

The 3 per cent growth in India's Index of Eight Core Industries (ICI) for September 2025 signifies a moderate expansion in the fundamental sectors driving the nation's industrial and infrastructure activity.

The ICI measures the combined and individual performance of production of eight core industries, viz. coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity. 

The final growth rate of Index of Eight Core Industries for August 2025 was observed at 6.5 per cent. The cumulative growth rate of ICI during April to September, 2025-26 is 2.9 per cent (provisional) compared to the corresponding period last year.

While certain sectors showed resilience, the overall momentum was tempered by marginal decline in some areas. 

Here is summary of the Index of Eight Core Industries 

Coal - Coal production (weight: 10.33 per cent) declined by 1.2 per cent in September, 2025 over September, 2024. Its cumulative index declined by 0.7 per cent during April to September, 2025-26 over the corresponding period of the previous year.

Crude Oil - Crude Oil production (weight: 8.98 per cent) declined by 1.3 per cent in September, 2025 over September, 2024. Its cumulative index declined by 1.1 per cent during April to September, 2025-26 over corresponding period of the previous year.

Natural Gas - Natural Gas production (weight: 6.88 per cent) declined by 3.8 per cent in September, 2025 over September, 2024. Its cumulative index declined by 2.9 per cent during April to September, 2025-26 over corresponding period of the previous year.

Petroleum Refinery Products - Petroleum Refinery production (weight: 28.04 per cent) declined by 3.7 per cent in September, 2025 over September, 2024. Its cumulative index declined by 0.3 per cent during April to September, 2025-26 over corresponding period of the previous year.

Fertilisers - Fertiliser production (weight: 2.63 per cent) increased by 1.6 per cent in September 2025 over September 2024. Its cumulative index declined by 0.4 per cent during April to September, 2025-26 over corresponding period of the previous year.

Steel - Steel production (weight: 17.92 per cent) increased by 14.1 per cent in September, 2025 over September, 2024. Its cumulative index increased by 11.0 per cent during April to September, 2025-26 over corresponding period of the previous year.

Cement - Cement production (weight: 5.37 per cent) increased by 5.3 per cent in September, 2025 over September, 2024. Its cumulative index increased by 7.7 per cent during April to September, 2025-26 over corresponding period of the previous year.

Electricity - Electricity generation (weight: 19.85 per cent) increased by 2.1 per cent in September, 2025 over September, 2024. Its cumulative index increased by 0.9 per cent during April to September, 2025-26 over corresponding period of the previous year.