India’s Core Industries Grow 3.7% In December 2025, Cement Tops List

Last Updated:January 20, 2026, 18:31 IST

India’s Index of Eight Core Industries rose 3.7 percent in December 2025, led by cement and steel growth, while oil and gas output declined.

Infrastructure-Linked Sectors Push Core Index Higher in December

India’s core industrial sectors showed stronger momentum in December 2025, with the Index of Eight Core Industries (ICI) rising 3.7 per cent year-on-year, according to provisional government data. This marks an improvement from November’s final growth rate of 2.1 per cent, signalling a mild recovery in key production segments.

The eight core industries together account for 40.27 per cent of the weight of the Index of Industrial Production (IIP), making them a crucial indicator of overall industrial health.

Cement, Steel Lead the Growth

Cement and steel emerged as the strongest performers in December. Cement production jumped 13.5 per cent, reflecting steady demand from infrastructure and construction activity. Steel output also remained robust, rising 6.9 per cent during the month.

Electricity generation increased by 5.3 per cent, pointing to sustained power demand from industry and households. Fertilizer production grew 4.1 per cent, offering support to the agricultural sector, while coal output rose 3.6 per cent, helping ease supply pressures.

Oil and Gas Remain a Weak Spot

In contrast, the oil and gas segments continued to struggle. Crude oil production declined by 5.6 per cent, while natural gas output fell 4.4 per cent in December compared to the same month last year. Petroleum refinery production also slipped 1.0 per cent, highlighting ongoing operational and supply-side challenges in the energy sector.

Cumulative Growth Still Modest

For the April–December 2025-26 period, the cumulative growth of the core industries stood at 2.6 per cent, slightly muted despite strong gains in cement and steel. Steel recorded a sharp 9.5 per cent cumulative growth, while cement rose 8.8 per cent.

However, coal, crude oil, and natural gas saw cumulative declines, which weighed on the overall index.

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