India’s Core Infrastructure Sectors Show Slower Growth in March 2025

India’s core infrastructure sectors experienced a growth slowdown to 3.8 per cent in March 2025, down from 6.3 per cent in the same month the previous year, as per recent official data. Despite this, there was a marginal improvement from February’s 3.4 per cent growth rate.

Key Factors Behind the Slowdown

The moderation in growth was primarily attributed to decreased output in crude oil and natural gas sectors. Additionally, significant sectors such as coal, refinery products, steel, and electricity witnessed a deceleration in their growth rates.

Sector-wise Performance Highlights

Coal: Up 1.6%
Refinery products: Up 0.2%
Steel: Up 7.1%
Electricity: Up 6.2%
Fertiliser: Jumped 8.8% (compared to a 1.3% decline in March 2024)
Cement: Grew by 11.6% (from 10.6% in March last year)

Crude oil and natural gas were the only sectors to report a contraction in output during the month.

Annual Growth Overview

For the entire financial year 2024-25 (April–March), the cumulative growth of the eight core sectors was recorded at 4.4 per cent, significantly lower than the 7.6 per cent growth in the previous fiscal year.

Importance of Core Sectors

These eight core sectors, which include coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity, contribute to 40.27 per cent of the Index of Industrial Production (IIP), serving as a crucial indicator of the overall industrial performance. The IIP index is released by the Ministry of Commerce & Industry.