India’s Core Sector Growth Reaches 13-Month High in August

India’s core infrastructure sectors experienced a significant rebound in August 2025, with output increasing by 6.3% year-on-year. This marks the highest growth rate in 13 months and indicates a strong recovery in key industrial activities, including coal, steel, and cement production. The uptick follows a 3.7% growth in July and a 1.5% contraction in August 2024, highlighting a positive shift in the country’s industrial landscape.

Sector-Wise Performance

• Coal: Production surged by 11.4%, recovering from a 12.3% decline in July.
• Steel: Output rose by 14.2%, driven by heightened demand from infrastructure projects.
• Cement: Increased by 6.1%, reflecting growth in construction activities.
• Fertilizers: Production grew by 4.6%, supporting agricultural needs.
• Electricity: Generation saw a 3.1% rise, indicating stable energy supply.
• Refinery Products: Output improved by 3.0%, rebounding from a 1.1% decline in July.
• Crude Oil: Production declined by 1.2%, showing a slight improvement over the previous month’s 1.3% drop.
• Natural Gas: Output decreased by 2.2%, a modest improvement from a 3.2% fall in July.

Economic Implications
The robust performance of these sectors underscores a recovery in industrial activities, potentially boosting overall economic growth. The positive momentum is expected to support employment and investment in infrastructure, contributing to sustained economic development.

Conclusion
The 6.3% growth in India’s core sector in August 2025 reflects a significant turnaround in industrial performance. While challenges remain in certain areas, the overall trend indicates a strengthening industrial base, which is crucial for the country’s economic resilience and growth.