26th June 2025 (28 Topics)
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Core Sector Growth
Context
The growth of India’s eight core industries, which form the backbone of the industrial sector, slowed to just 0.7% in May 2025, the lowest in the past nine months. This comes after already weak performance in April (1%). The biggest concern is that half of the core sectors saw contraction, including electricity, natural gas, fertilisers, and crude oil.
What are the Core Sectors?
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Key findings on core sector growth for May 2025:
- Core sector growth fell to 0.7%, the lowest in 9 months, indicating industrial slowdown.
- Electricity output contracted 5.8%, worst since June 2020.
- Natural gas (-3.6%) and crude oil (-1.8%) continued their decline.
- Fertiliser production dropped sharply by 5.9%.
- Cement (+9.2%) and steel (+6.7%) showed strong recovery due to infra push.
- Refinery products rebounded with 1.1% growth after contraction in April.
- Coal growth slowed to 2.8%.
- Early monsoon rains disrupted electricity and mining.
- Industrial growth (IIP) may fall to 1.5–2% in May.
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