How Did India’s Core Sector Grow by 3.7% in December?
Synopsis
In December 2025, India's core sector grew by an impressive 3.7%, driven largely by the rise in cement, steel, electricity, fertiliser, and coal production. These positive trends indicate a robust industrial performance, reflecting strong economic momentum. Explore the detailed statistics that reveal the health of India's industrial landscape.
Key Takeaways
3.7% growth in India's core sector in December 2025.
Significant increases in cement, steel, electricity, fertiliser, and coal production.
Provisional cumulative growth rate of 2.6% from April to December 2025-26.
Steel production rose by 6.9% year-on-year in December 2025.
Cement production saw a remarkable 13.5% increase in December 2025.
New Delhi, Jan 20 (NationPress) The Index of Eight Core Industries (ICI) experienced a growth of 3.7 percent year-on-year in December 2025, driven by significant increases in the production of cement, steel, electricity, fertiliser, and coal, according to government data released on Tuesday.
The final growth figure for the ICI in November 2025 was recorded at 2.1 percent.
The provisional cumulative growth rate of the ICI from April to December 2025-26 stands at 2.6 percent compared to the same period last year, as reported by the Commerce Ministry.
Steel production surged by 6.9 percent in December 2025 compared to December 2024, with a cumulative index rise of 9.5 percent for the April to December 2025-26 timeframe.
Coal production increased by 3.6 percent last month compared to December 2024, although its cumulative index showed a decline of 0.7 percent from April to December 2025-26.
Fertiliser output saw a boost of 4.1 percent in December 2025 over the previous year, with a cumulative index increase of 1.7 percent during the same April to December period.
Cement production notably rose by 13.5 percent in December 2025 from December 2024, contributing to a cumulative increase of 8.8 percent in the April to December 2025-26 index.
Additionally, electricity generation climbed by 5.3 percent last month, with a cumulative index rise of 0.3 percent for the April to December period.
Meanwhile, the Index of Industrial Production (IIP) showed an impressive growth rate of 6.7 percent (quick estimate) in November, up from 5 percent in the same month last year. The manufacturing sector reported a robust year-on-year growth of 8 percent in November.
This growth surge can be attributed to the fact that 20 out of 23 industry groups within the NIC 2-digit-level exhibited positive growth in November 2025 relative to November 2024 in the manufacturing sector.
Point of View
I observe that the recent growth in India's core sector reflects a positive trajectory for our economy. The advancements in key industries like cement and steel not only bolster industrial output but also signal a hopeful outlook for future economic conditions, reinforcing our belief in India's potential.
NationPress
10 May 2026
Frequently Asked Questions
What is the Index of Eight Core Industries?
The Index of Eight Core Industries measures the performance of key sectors that significantly impact economic growth, including cement, steel, electricity, fertiliser, and coal production.
What was the growth rate of the ICI in November 2025?
The ICI recorded a growth rate of 2.1 percent in November 2025.
How much did cement production increase in December 2025?
Cement production increased by 13.5 percent in December 2025 compared to the same month in the previous year.
What are the implications of the ICI growth for the economy?
The growth in the ICI indicates a strengthening manufacturing sector, which can lead to increased employment and economic stability.
How is the ICI data collected?
The ICI data is collected by the government through various industry reports and assessments that track production levels across key sectors.
