India’s eight core infrastructure industries recorded a year-on-year expansion of 3.7 per cent in December 2025, signalling a recovery in activity at the
end of the calendar year even as growth remained lower than last year’s levels. The pace was slower than the 5.1 per cent growth seen in December 2024, but it marked a clear improvement over November’s revised 2.1 per cent, according to official data released on Tuesday. The sequential uptick pushed core sector output to a four-month high, supported mainly by stronger performance in steel and cement, two segments closely tied to construction and infrastructure spending. Since these industries form the backbone of industrial activity, the data offer important clues on the broader health of the economy. Steel, Cement Anchor The December Improvement A sharp rise in cement and steel output played a central role in lifting December’s numbers. Cement production surged 13.5 per cent, reflecting sustained demand from housing, roads and infrastructure projects. Steel output also posted a solid 6.9 per cent increase, underscoring resilience in construction-linked activity despite global uncertainties. Other sectors also contributed positively. Electricity generation grew 5.3 per cent, while fertiliser output rose 4.1 per cent, indicating steady demand from agriculture and power consumption. Coal production increased 3.6 per cent during the month, although cumulative coal output for April–December remained marginally lower than last year. Oil And Gas Continue To Weigh On Growth While headline growth improved, the recovery was held back by persistent weakness in hydrocarbons. Crude oil production declined 5.6 per cent year-on-year in December, while natural gas output fell 4.4 per cent, reflecting structural challenges in domestic energy production. Refinery products also recorded a 1.0 per cent contraction during the month. On a cumulative basis, crude oil output shrank 1.9 per cent and natural gas production dropped 3.2 per cent in the April–December 2025–26 period. Refinery output, however, remained broadly stable, registering a marginal 0.1 per cent growth. The Index of Eight Core Industries tracks coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, and carries a 40.27 per cent weight in the Index of Industrial Production (IIP). As a result, its performance is a key barometer of overall industrial momentum. On a cumulative basis, core sector output expanded 2.6 per cent between April and December 2025–26, lower than last year’s pace, highlighting continued pressure from oil- and gas-linked segments. However, the December rebound suggests underlying support from infrastructure and construction activity, offering cautious optimism as the economy heads into the final quarter of the financial year.
