India Core Sectors Grow 3.7%
Analysis based on 6 articles · First reported Jan 20, 2026 · Last updated Jan 20, 2026
The positive growth in India's core infrastructure sectors, particularly cement and steel, suggests resilience in construction and infrastructure demand, which is generally positive for the broader market. However, the continued weakness in oil and gas production highlights structural challenges that could temper overall industrial recovery.
India's eight core infrastructure sectors, which account for 40.27% of the Index of Industrial Production (IIP), expanded by 3.7% year-on-year in December 2025. This marks a four-month high and a sequential improvement from November's 2.1% growth, according to provisional government data released by the India — Ministry of Trade and Industry. The growth was primarily driven by strong performances in cement production (up 13.5%), steel output (up 6.9%), and electricity generation (up 5.3%). Fertiliser output also grew by 4.1%, and coal production rose by 3.6%. However, the recovery was partially offset by continued weakness in hydrocarbons, with crude oil production declining by 5.6%, natural gas output falling by 4.4%, and refinery products production slipping by 1.0%. On a cumulative basis for April–December 2025-26, core sector output grew by 2.6%, reflecting uneven industrial recovery. Aditi Nayar, Chief Economist at ICRA Limited, noted that robust construction activity likely continued, despite a deceleration in cement output growth compared to November.
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