India’s eight core industries grew 3% year-on-year in September 2025, led by strong performance in steel and cement, according to data from the Commerce and Industry Ministry. Steel output surged 14.1% as demand from government infrastructure projects picked up, while cement production rose 5.3% amid steady construction activity across the country.
From April to September FY26, steel production increased 11%, and cement output climbed 7.7%, signalling recovery in industrial demand despite sluggish growth in some energy-linked sectors.
Mixed Trends in Energy and Refining
While electricity generation and fertiliser output recorded modest gains of 2.1% and 1.6% respectively, the energy segment showed signs of strain. Coal production declined 1.2%, and refinery products such as petrol, diesel, and LPG fell 3.7% year-on-year. Crude oil and natural gas output also dipped 1.3% and 3.8% respectively, reflecting continued volatility in upstream operations.
The Index of Eight Core Industries (ICI) — accounting for over 40% of India’s industrial production — recorded cumulative growth of 2.9% for April–September FY26, compared with the same period last year. August’s final growth rate was revised to 6.5%.
Outlook: Construction and Infrastructure Fuel Optimism
Analysts note that rising steel and cement demand underscores the resilience of India’s infrastructure and real estate sectors. The government’s focus on public works, highways, and urban housing projects is expected to sustain industrial momentum through the second half of FY26.
With energy production likely to normalise and monsoon-related disruptions easing, the core industries’ trajectory suggests a gradual but steady rebound in India’s industrial base heading into the festive quarter.