Key Points
- India’s eight core sectors grew just 0.5% in April 2025, marking the slowest pace in eight months.
- Major declines were seen in refinery products, fertilisers, and crude oil, while cement and steel growth slowed sharply.
- This weak performance is expected to drag down overall factory output (IIP) for April.
- The core industries account for over 40% of India’s Index of Industrial Production (IIP).
- Experts warn of a broader industrial slowdown and potential impact on GDP growth.
New Delhi: India’s industrial engine sputtered in April 2025 as the growth of the eight core infrastructure sectors slumped to just 0.5% the lowest in eight months according to official data released by the Ministry of Commerce and Industry. This marks a sharp deceleration from 4.6% in March 2025 and a dramatic fall from 6.9% in April last year.
Sector-Wise Performance: Widespread Weakness
The eight core sectors coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity are vital to India’s industrial output, constituting over 40% of the Index of Industrial Production (IIP).
- Cement: Grew by 6.7% in April, but this was nearly half the 12.2% growth seen in March and the lowest in six months.
- Steel: Output rose by 3%, a significant slowdown from 9.3% in March.
- Electricity: Growth slipped to just 1%, the weakest in seven months.
- Coal: Production increased by 3.5%, up from 1.6% in March, marking a three-month high.
- Natural Gas: Marginal uptick of 0.4%, ending a 10-month streak of contraction.
- Crude Oil: Declined by 2.8%, marking the fourth straight month of contraction.
- Refinery Products: Output fell sharply by 4.5%, the steepest drop since November 2022.
- Fertilisers: Production contracted by 4.2%, the first decline in 11 months.
What’s Behind the Slowdown?
The disappointing figures are attributed to a combination of factors:
- High Base Effect: April 2024 had seen exceptionally high growth, making year-on-year comparisons tougher.
- Sectoral Declines: Major contractions in refinery products, fertilisers, and crude oil dragged down the overall growth.
- Global Uncertainties: Geopolitical tensions and trade uncertainties have added pressure on industrial activity.
Economic Impact and Expert Views
The core sector’s weak performance is a leading indicator of broader industrial health. Experts caution that this slowdown is likely to pull down the overall factory output (IIP) for April, with projections suggesting IIP growth could moderate to around 1%.
“The core sector growth is quite disappointing even though the base effect was strong,” said Madan Sabnavis, Chief Economist at Bank of Baroda.
Aditi Nayar, Chief Economist at ICRA, added that the “core sector’s performance had weakened substantially” and expects a sharp slowdown in IIP growth for April.
Why the Core Sector Matters
These eight industries form the backbone of India’s industrial ecosystem. Their performance not only influences the IIP but also signals the direction of GDP growth, investment sentiment, and monetary policy.
Core Sector April 2025: Performance Snapshot
| Sector | Growth (April 2025) | Growth (March 2025) | Growth (April 2024) | Notes |
|---|---|---|---|---|
| Cement | +6.7% | +12.2% | N/A | Lowest in 6 months |
| Steel | +3.0% | +9.3% | N/A | 7-month low |
| Electricity | +1.0% | +7.5% | N/A | Slowest in 7 months |
| Coal | +3.5% | +1.6% | N/A | 3-month high |
| Natural Gas | +0.4% | -12.7% | N/A | First growth in 10 months |
| Crude Oil | -2.8% | N/A | N/A | 4th consecutive contraction |
| Refinery Products | -4.5% | N/A | N/A | Sharpest drop since Nov 2022 |
| Fertilisers | -4.2% | N/A | N/A | First contraction in 11 months |
With the core sector starting FY26 on a weak note, policymakers and industry leaders will be closely watching upcoming data for signs of recovery or further slowdown.
