THEBUSINESSBYTES
BUREAU
NEW
DELHI, JANUARY 20, 2026
India’s key infrastructure industries
delivered a steady performance in December 2025, recording a growth of 3.7 per
cent, driven largely by robust output in cement, steel, coal, electricity and
fertilisers, according to data released by the Commerce & Industry Ministry
on Tuesday. The uptick signals continued momentum in construction and
infrastructure activity, even as energy-linked segments faced persistent
headwinds.
The Index of Eight Core Industries
(ICI), which measures the combined performance of coal, crude oil, natural gas,
refinery products, fertilisers, steel, cement and electricity, rose to 175.7
points in December 2025 from 169.4 points in the same month a year ago. With
the core sector accounting for 40.27 per cent of the weight in the Index of
Industrial Production (IIP), the latest figures underscore its critical role in
shaping overall industrial growth.
Cement emerged as the standout performer,
posting a sharp 13.5 per cent growth, the highest among all core industries,
reflecting sustained demand from infrastructure and real estate projects. Steel
production expanded by a healthy 6.9 per cent, while electricity generation
increased by 5.3 per cent during the month. Coal output rose by 3.6 per cent
and fertiliser production grew by 4.1 per cent, together lending broad-based
support to the index.
In contrast, energy-related segments
continued to show weakness. Crude oil production declined by 5.6 per cent,
natural gas output fell by 4.4 per cent, and petroleum refinery products
registered a marginal contraction of 1.0 per cent in December 2025, highlighting
ongoing structural and operational challenges in the hydrocarbons sector.
The Ministry also revised the final
growth rate for November 2025 to 2.1 per cent. On a cumulative basis, the core
sector recorded a provisional growth of 2.6 per cent during April–December
2025-26 compared to the corresponding period of the previous year. During this
period, steel production rose strongly by 9.5 per cent, cement by 8.8 per cent
and fertilisers by 1.7 per cent, while electricity generation saw a modest increase
of 0.3 per cent. Coal output declined by 0.7 per cent, and crude oil and
natural gas contracted by 1.9 per cent and 3.2 per cent, respectively.
The Ministry noted that the data for
December 2025 is provisional and subject to revision. Electricity generation
figures include output from renewable sources, in line with the revised
methodology adopted since April 2014. The Index of Eight Core Industries for
January 2026 is scheduled to be released on February 20, 2026.
