India’s Eight Core Sectors Grow At 3-Month High Of 1.7% In June Vs 1.2% In May

Last Updated:July 21, 2025, 17:54 IST

India’s Core Sector Growth June 2025: Refinery products (3.4 per cent), steel (9.3 per cent), and cement (9.2 per cent) output record a positive growth.

India’s eight core infrastructure sectors grew to a three-month high of 1.7 per cent in June 2025, according to the government data released on Monday. It is higher than the 1.2 per cent recorded in May 2025 but lower than the 5 per cent in June 2024.

The output of five key sectors — coal, crude oil, natural gas, fertiliser, and electricity — recorded a negative growth in June.

However, refinery products (3.4 per cent), steel (9.3 per cent), and cement (9.2 per cent) output recorded a positive growth.

During April-June this fiscal year, the eight sectors expanded 1.3 per cent against 6.2 per cent during the same period in the last fiscal year.

Coal production declined 6.8 per cent in June, while crude oil output contracted 1.2 per cent. Natural gas and fertiliser output dipped 2.8 per cent and 1.2 per cent in June, respectively.

Electricity generation declined 2.8 per cent year-on-year in June.

Aditi Nayar, chief economist of ICRA Ltd, said, “Although the year-on-year (YoY) growth in core output improved slightly to 1.7% in June 2025 from 1.2% in May 2025, it remained decidedly tepid, with as many as five of the eight sectors recording a contraction in their output in the month.”

While an elevated base weighed upon coal output, excess rains in the latter half of June 2025 impacted electricity generation, she added.

“Encouragingly, the output of the cement and steel sectors rose by a robust 9.2-9.3% in June 2025, although this was supported by a favourable base in the case of the former. The growth in volumes of these segments has been quite healthy in Q1 FY2026, which implies that the construction sector is poised to record a robust GVA growth in the quarter. Given the subdued growth in core output, ICRA expects the IIP growth to print at 1.5-2.5% in June 2025,” Nayar said.

Economists expect this subdued infrastructure performance to weigh on overall GDP growth in the first quarter of FY26. Capital formation remains uneven, while global demand conditions continue to challenge India’s export-driven manufacturing segments.

Mohammad Haris

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More

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