India’s core sector growth rises to 3.7% in December, led by cement and steel

India’s eight core infrastructure industries grew by 3.7 per cent year-on-year in December 2025, rising to a four-month excessive and marking a transparent sequential enchancment from 2.1 per cent progress in November, authorities knowledge launched on Tuesday confirmed.

Whereas the tempo of enlargement slowed from 5.1 per cent recorded in December 2024, the December rebound suggests a gradual firming up of commercial exercise towards the tip of the calendar yr, pushed primarily by construction- and infrastructure-linked sectors.

The Index of Eight Core Industries (ICI), which tracks coal, crude oil, pure gasoline, refinery merchandise, fertilisers, metal, cement and electrical energy, grew 3.7 per cent on a provisional foundation in December. The index carries 40.27 per cent weight within the Index of Industrial Manufacturing (IIP), making it a key indicator of broader industrial momentum.

Cement and metal anchor December pickup

The acceleration in December was led by a pointy rise in cement manufacturing, which jumped 13.5 per cent, reflecting sustained demand from housing, infrastructure and public works tasks.

Metal output rose 6.9 per cent, reinforcing indicators of resilience in development and capital items segments. Electrical energy era elevated 5.3 per cent, pointing to regular industrial and business energy demand, whereas fertiliser manufacturing expanded 4.1 per cent, supported by seasonal agricultural necessities.

Coal manufacturing grew 3.6 per cent throughout the month, aiding energy era and steelmaking, though its efficiency over the complete monetary yr stays blended.

In all, 5 of the eight core sectors—coal, fertilisers, metal, cement and electrical energy—posted constructive progress in December, serving to carry the headline index.

Hydrocarbon weak spot tempers total momentum

The development in core sector progress was partially offset by continued weak spot in vitality hydrocarbons.

Crude oil manufacturing contracted 5.6 per cent year-on-year, whereas pure gasoline output declined 4.4 per cent, underlining persistent structural challenges in home oil and gasoline manufacturing, together with ageing fields and restricted new output additions.

Refinery merchandise output additionally slipped 1 per cent in December, reflecting softer throughput and maintenance-related disruptions.

Cumulative progress stays subdued

On a cumulative foundation, core sector output grew 2.6 per cent throughout April–December 2025-26, in contrast with the corresponding interval final yr. The comparatively modest enlargement highlights the uneven nature of India’s industrial restoration, with energy concentrated in construction-linked segments and weak spot persisting in upstream vitality sectors.

Whereas metal and cement recorded sturdy cumulative progress, coal output declined 0.7 per cent, crude oil fell 1.9 per cent, and pure gasoline contracted 3.2 per cent throughout the nine-month interval. Refinery output remained largely flat, with marginal cumulative progress.

The federal government additionally revised the November 2025 core sector progress to 2.1 per cent (ultimate), confirming that December’s numbers signify a sequential enchancment, whilst year-on-year momentum stays under final yr’s ranges.