What is Driving the 1.8% Growth in India’s Core Sector for November?
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Synopsis
The recent growth of 1.8% in India's core sector for November highlights resilience despite challenges. Key contributors like cement and steel are boosting the economy, but gas production lags. What does this mean for India's industrial outlook? Explore the numbers and implications in this insightful analysis.
Key Takeaways
- Core sector growth at 1.8% in November 2025.
- Cement production rose by 14.5%.
- Steel production increased by 6.1%.
- Natural gas output declined by 2.5%.
- 40.27% weight of core industries in IIP.
New Delhi, Dec 22 (NationPress) The combined Index of Eight Core Industries (ICI) saw a growth of 1.8 percent in November (year-on-year), driven by increases in cement, steel, fertiliser, and coal production, according to data released by the government on Monday.
Coal output rose by 2.1 percent in November 2025 compared to November 2024.
Conversely, its cumulative index experienced a decline of 1.4 percent from April to November 2025-26 compared to the same period the previous year, as reported by the Commerce Ministry.
Meanwhile, steel production surged by 6.1 percent in November 2025 over the same month in 2024, with its cumulative index climbing by 9.7 percent during the April to November period.
Cement production recorded a significant increase of 14.5 percent in November, while its cumulative index rose by 8.2 percent during the same timeframe.
Fertiliser production also saw a growth of 5.6 percent in November, with its cumulative index increasing by 1.3 percent from April to November.
The Eight Core Industries account for 40.27 percent of the total weight in the Index of Industrial Production (IIP).
On the downside, natural gas production fell by 2.5 percent in November 2025 compared to November 2024, and its cumulative index dropped by 3.0 percent in the same April to November period.
Additionally, India's industrial production growth rate slowed to 0.4 percent in October, attributed to fewer working days owing to several festivals, including Dussehra, Diwali, and Chhath, as stated by the Ministry of Statistics.
In contrast, the industrial growth rate based on the IIP had previously accelerated to 4 percent in September and August, rising from a four-month high of 3.5 percent in July, which itself had improved from 1.5 percent in June.
Point of View
It's crucial to recognize the mixed signals from India's industrial sector. While the growth in core industries like cement and steel reflects potential economic recovery, the decline in natural gas production raises concerns about sustainability and energy security. Our focus remains on providing balanced, authoritative insights on the nation's economic trajectory.
NationPress
24/12/2025
Frequently Asked Questions
What are the Eight Core Industries?
The Eight Core Industries in India include coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity.
Why is the growth of the core sector important?
The growth of the core sector is crucial as it influences the overall industrial production and economic growth of the country.
What factors affect industrial production?
Factors like seasonal variations, working days, and festivals can significantly impact industrial production rates.
How is the Index of Industrial Production calculated?
The Index of Industrial Production (IIP) is calculated based on the production figures of various industries weighted according to their contribution to the overall industrial output.
What does a decline in natural gas production indicate?
A decline in natural gas production may indicate challenges in the energy sector, potentially affecting energy security and economic stability.
