India's Core Infrastructure Sectors Witness a Slowdown

Growth in India’s eight core infrastructure sectors decelerated to 1.7% in June 2025, a significant drop from 5% recorded in the same month last year. This slowdown reflects a broader weakness in industrial activity, with five sectors, including coal and electricity, experiencing contractions.

Sectoral Performance Highlights

Key segments such as coal (-6.8%), electricity (-2.8%), natural gas (-2.8%), crude oil (-1.2%), and fertilizers (-1.2%) registered negative growth in June. However, the sectors of steel (9.3%), cement (9.2%), and refinery products (3.4%) showed strong gains, helping to mitigate the overall contraction.

Quarterly Overview and Industrial Impact

During the April–June quarter, core sector output rose just 1.3%, compared to 6.2% in the corresponding period last fiscal. The core sectors, which include coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity, account for 40.27% of the Index of Industrial Production (IIP), serving as a crucial indicator of industrial activity.