India’s core sector recorded a notable growth of 6.3% in August 2025 on an annual basis, showing a significant acceleration from the 3.7% growth rate observed in July. The Index of Core Industries, which comprises eight key sectors and holds a substantial weight of over 40% in the country’s overall industrial production, reflects this promising performance. The growth was primarily driven by strong performances in several key sectors, most notably steel, which saw the highest increase at 14.2% in August. Other contributors to the positive trend included cement production, which grew by 6.1%, and coal production, which saw an 11.4% rise.
However, the growth was not uniform across all industries. The crude oil sector experienced a decline of 2.2%, marking its eighth consecutive month of reduced output. Similarly, natural gas production fell by 3.2% in August, following a decline in the previous month. On a more positive note, the petroleum refinery sector increased by 3.0%, while electricity generation and the fertilizer industry reported growths of 3.1% and 4.6%, respectively. The collective performance indicates a strengthening of India’s industrial base, though a few sectors continue to face challenges. The cumulative indices for the period of April-August 2025 further provide a long-term view, with a decline in crude oil and coal but an overall positive trend for most industries, reinforcing the positive outlook for India’s industrial production.
