What Factors Led to the 1.7% Growth in Eight Core Industries in June?
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Synopsis
In June, the Index of Eight Core Industries experienced a significant growth of 1.7% compared to the previous year, driven by impressive performances in steel, cement, and refinery production. This article explores the details behind this growth, the overall industrial landscape, and its implications for the economy. Stay informed about the latest industry trends!
Key Takeaways
- 1.7% growth in the ICI in June 2025.
- Steel production increased by 9.3%.
- Cement production rose by 9.2%.
- Petroleum refinery production grew by 3.4%.
- Electricity generation declined by 2.8%.
New Delhi, July 21 (NationPress) The Index of Eight Core Industries (ICI) has seen a growth of 1.7 percent in June compared to the same month in the previous year, as reported by the Ministry of Commerce and Industry.
Notably, the production of steel, cement, and refinery products demonstrated positive growth last month.
The ministry noted, "The final growth rate of the ICI for May 2025 was noted at 1.2 percent. The provisional cumulative growth rate for ICI from April to June 2025-26 stands at 1.3 percent compared to the same period last year."
In terms of specifics, petroleum refinery production rose by 3.4 percent year-on-year in June, maintaining a constant cumulative index from April to June 2025-26 compared to the previous year.
Additionally, steel production surged by 9.3 percent in June, with a cumulative index increase of 7.0 percent for the April to June period of 2025-26 relative to the prior year.
Similarly, cement production recorded a 9.2 percent increase last month, while its cumulative index rose by 8.4 percent during April to June 2025-26 compared to the corresponding timeframe last year.
The ICI tracks the overall and individual performance of production across eight core sectors: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity.
These eight industries account for 40.27 percent of the weight in the Index of Industrial Production (IIP).
However, it is important to note that electricity generation fell by 2.8 percent in June 2025 compared to June 2024, with a cumulative decline of 2.0 percent from April to June 2025-26 over the same period last year.
Furthermore, natural gas production also dropped by 2.8 percent in June 2025 compared to June 2024, with a cumulative decrease of 2.5 percent during April to June 2025-26 versus the previous year.
Point of View
The recent 1.7% growth in the Index of Eight Core Industries reflects resilience and potential within our industrial sectors. The positive performance in steel and cement, despite challenges in electricity and natural gas production, showcases a diversified industrial landscape that could lead to sustainable economic growth.
NationPress
21/07/2025
Frequently Asked Questions
What is the Index of Eight Core Industries?
The Index of Eight Core Industries measures the performance of key sectors in the economy including Coal, Crude Oil, Natural Gas, Fertilizers, Steel, Cement, Refinery Products, and Electricity.
What was the growth rate for steel production in June?
Steel production saw an impressive growth rate of 9.3% in June compared to the previous year.
How does the ICI impact the economy?
The ICI provides insights into the performance of critical industries, helping gauge economic health and inform policy decisions.
What were the declines noted in electricity and natural gas production?
Electricity generation declined by 2.8% and natural gas production also fell by 2.8% in June 2025 compared to June 2024.
Why is the ICI important?
The ICI accounts for 40.27% of the weight in the Index of Industrial Production (IIP), making it a vital indicator of industrial activity and economic performance.
