New Delhi: According to data released on Monday by the Ministry of Commerce and Industry, India's core industries, which include eight sectors, grew 1.7% in June 2025, down from 5% in the same month of 2024.
On a month-on-month basis, the growth in June is quite high, with these critical sectors increasing by 1.2%.
According to trade ministry data, steel, cement, and refinery product production increased significantly in June 2025.
The Index of Eight Core Industries (ICI) assesses the overall and individual performance of output across eight key sectors: coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and power.
The eight fundamental industries contribute for 40.27% of the total weight of commodities included in the Index of Industrial Production (IIP).
The cumulative growth rate of ICI from April to June 202526 is 1.3% (provisional), up from the same time last year.
The summary of the Index of Eight Core Industries is provided below:
Coal production (weight: 10.33 percent) fell 6.8 percent in June 2025 compared to June 2024. Its total index fell 0.3 percent from April to June 2025, which is less than the previous year's equivalent period.
Crude Oil: Crude oil production (weight: 8.98 percent) decreased by 1.2 percent in June 2025 as compared to June 2024. Its cumulative index fell by 2.0 percent from April to June 2025-26, compared to the same period last year.
Natural Gas Natural gas production (weight: 6.88%) decreased by 2.8% in June 2025 compared to June 2024. From April to June 2025, its total index fell by 2.5% over the same period last year.
Petroleum refinery products: In June 2025, petroleum refinery output (weight: 28.04%) increased by 3.4% over June 2024. From April to June 2025, its cumulative index remained constant compared to the same period the previous year.
Fertilizers. Fertilizer output (weight: 2.63 percent) decreased by 1.2% in June 2025 when compared to June 2024. Its cumulative index fell by 3.8% from April to June 202526, while the same period last year saw an increase.
Steel production (weight: 17.92 percent) rose by 9.3 percent in June 2025 compared to June 2024. Its cumulative index increased by 7.0% from April to June 2025, compared to the same period last year.
Cement production (weight: 5.37%) grew by 9.2% in June 2025 compared to June 2024. Its cumulative index climbed by 8.4% from April to June 202526, compared to the same period the previous year.
Electricity generation (weight: 19.85%) decreased by 2.8% in June 2025 compared to June 2024. Its cumulative index fell by 2.0% from April to June 2025, down from the same period the previous year.
Despite a slight improvement in year-on-year (YoY) core production growth to 1.7 percent in June 2025 from 1.2 percent in May 2025, it remained relatively weak, with five of the eight industries reporting output contractions in the month, according to Aditi Nayar, Chief Economist, ICRA Ltd. While a high base burdened coal production, excess rainfall in the second half of June 2025 hampered power generation.
Encouragingly, the production of the cement and steel industries increased by a healthy 9.2-9.3 percent in June 2025, owing in part to a beneficial basis in the case of the former. In Q1 FY2026, the volumes of these segments increased substantially, indicating that the construction sector is on track for strong GVA growth in the quarter. ICRA forecasts IIP growth to be 1.5-2.5% in June 2025, based on modest core output growth.
The index for July 2025 will be released on Wednesday, August 20, 2025.
