What Factors Contributed to India’s 8 Core Industries Growing by 2 Percent in July?
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Synopsis
India's eight core industries displayed a notable growth of 2 percent in July compared to the same month last year. This article dives into the factors driving this growth, including the surge in steel and cement production, as well as the implications for the broader economy.
Key Takeaways
- India's eight core industries grew by 2 percent in July 2023.
- Steel production surged by 12.8 percent due to infrastructure demand.
- Cement production increased by 11.7 percent amid construction activities.
- Fertilizer output rose by 2 percent during the kharif season.
- Electricity generation grew by 0.5 percent, while coal production declined.
New Delhi, Aug 20 (NationPress) The consolidated index of India's eight core sectors saw a growth of 2 percent in July this year, when compared to the same month last year, as per the report issued by the Ministry of Commerce and Industry on Wednesday.
The sectors of steel, cement, fertilizer, and electricity witnessed positive growth in July, according to the official announcement.
The eight core industries account for 40.27 percent of the weight in the Index of Industrial Production (IIP), serving as an essential barometer for the overall industrial advancement.
The final growth rate for these eight sectors in June this year was recorded at 2.2 percent, while the cumulative growth rate from April to July 2025-26 stands at 1.6 percent compared to the same period last year.
Steel manufacturing, which holds a weight of 17.92 percent in the index, exhibited a remarkable growth of 12.8 percent in July in comparison to the previous year, driven by a surge in demand from significant government infrastructure projects. The cumulative index for steel from April to July 2025-26 increased by 8.5 percent over the same period last year.
Cement production also experienced an impressive 11.7 percent rise in July, fueled by heightened demand from large-scale infrastructure and construction endeavors. Its cumulative index saw a growth of 8.9 percent from April to July 2025-26 compared to the previous year.
Fertilizer output grew by 2 percent in July over the same month last year, aided by the momentum in the kharif sowing season due to favorable monsoon conditions.
Electricity generation saw an increase of 0.5 percent during July, although coal production faced a decline of 12.3 percent due to heavy monsoon rains.
Similarly, both crude oil and natural gas production fell by 1.3 percent and 3.2 percent, respectively, in July compared to the previous year. Petroleum refinery production also dropped by 1 percent during this month.
Point of View
It's crucial to recognize that the growth in India's core industries reflects underlying economic resilience. While certain sectors are thriving, others face challenges that need addressing. This balanced outlook ensures we stay informed on national progress and areas requiring attention.
NationPress
20/08/2025
Frequently Asked Questions
What are the eight core industries in India?
The eight core industries in India include coal, crude oil, natural gas, refining, fertilizers, steel, cement, and electricity.
How is the growth of core industries measured?
The growth of core industries is measured using the Index of Industrial Production (IIP), which gauges the performance of key sectors in the economy.
What contributed to the growth of the steel industry?
Increased demand from major government infrastructure projects significantly contributed to the growth of the steel industry.
How do these core industries impact the economy?
These core industries account for a substantial portion of India's industrial output, and their growth is indicative of overall economic health.
What challenges do these industries face?
Challenges include fluctuating commodity prices, environmental regulations, and the impact of seasonal weather patterns on production.
