Core Sector Output Rebounds 1.8% in November, Driven by Cement and Steel

The output of core infrastructure sectors in India experienced a growth of 1.8% in November 2025, rebounding from a contraction in the previous month, according to official data released by the Ministry of Commerce and Industry. This growth was primarily fueled by significant increases in the production of cement, steel, fertilizers, and coal.

Production figures reveal that cement output surged by 14.5% compared to November 2024, while steel production increased by 6.1%. Additionally, the output of fertilizers and coal rose by 5.6% and 2.1%, respectively. The core sector, which includes eight key industries, had previously recorded a contraction of 0.1% year-on-year in October.

Year-on-Year Comparisons Show Mixed Results

Despite the sequential improvement in November, year-on-year comparisons highlight a less favorable trend. In November 2024, core sector growth had reached 5.8%. Over the first eight months of the current fiscal year, the cumulative growth in output among the eight core industries stood at 2.4%.

The eight core industries, which encompass coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity, account for 40.27% of the Index of Industrial Production (IIP).

ICRA Chief Economist Aditi Nayar noted that while the core sector growth showed expected improvement following the festive season, it remained subdued at 1.8%. She pointed out that the sequential increase from October to November was particularly pronounced in the cement sector, which saw a jump from 5.2% to 14.5%. Nayar emphasized the importance of considering the average growth for both months, which stands at only 0.8%, indicating a decline from the 3.0% growth recorded in the first half of the fiscal year.

Challenges in Energy-Linked Sectors

In contrast to the gains in cement and steel, several energy-linked sectors reported declines in production. Crude oil output fell by 3.2% year-on-year, while natural gas production decreased by 2.5%. Additionally, petroleum refinery output was 0.9% lower than the previous year. Electricity generation, which holds a significant 19.85%% weight in the index, also saw a decline, dropping by 2.2% compared to November 2024. For the first eight months of this fiscal year, electricity output was 0.3% lower than in the same period last year.

This mixed performance across sectors reflects broader trends in the economy and highlights the need for sustained growth efforts. The ongoing shifts in production dynamics will be crucial for policymakers and industry leaders as they navigate the challenges and opportunities in India’s infrastructure landscape.