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India’s Industrial Base Strengthens with 6.3% Core Sector Growth
India’s core sector output increased significantly by 6.3% in August 2025, achieving its highest level in the previous 15 months. The Ministry of Commerce and Industry announced the figures, stating that the increase was primarily driven by higher steel and coal production. This represents a significant improvement over July’s final growth result of 3.7%.
The core sector represents eight crucial industries: steel, coal, cement, fertiliser, electricity, crude oil, natural gas, and petroleum refinery products, which collectively account for more than 40% of the Index of Industrial Production.
Steel production increased the most, by 14.2% compared to August 2024, while coal output increased by 11.4%. Cement production increased by 6.1%, fertiliser by 4.6%, electricity generation by 3.1%, and petroleum refinery products by 3%. In contrast, crude oil production declined by 1.2%, while natural gas fell by 2.2%.
Economists expect the strong core sector statistics to convert into healthy IIP data, which is set to be released later this week. Aditi Nayar, Chief Economist at ICRA, anticipated overall IIP growth of 4.5 to 5.5 per cent in August, citing a rebound in mining activity following many months of contraction.
