Eight core industries rise 3.7% in December 2025 - Cement and steel lead; Coal, oil and gas decline

The combined Index of Eight Core Industries (ICI) rose by 3.7 per cent in December 2025 compared to December 2024, provisional data released by the Ministry of Commerce and Industry showed on Tuesday. The growth reflects increased production in key sectors such as Cement, Steel, Electricity, Fertilizers, and Coal.

The ICI measures production performance in eight major industries, namely Coal, Crude Oil, Natural Gas, Petroleum Refinery Products, Fertilisers, Steel, Cement, and Electricity.

These sectors together account for 40.27 per cent of the items included in the Index of Industrial Production (IIP), making them a key indicator of industrial growth in India.

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Sector-Wise Monthly Growth in December 2025

In December, Cement production recorded the highest growth among the eight core sectors at 13.5 per cent over the same month last year. Steel production rose 6.9 per cent, while Electricity generation increased by 5.3 per cent. Fertiliser output grew 4.1 per cent, and Coal production increased by 3.6 per cent during the month.

On the other hand, Crude Oil production declined by 5.6 per cent in December 2025 over December 2024. Natural Gas output also fell by 4.4 per cent, while Petroleum Refinery Products saw a marginal decline of 1.0 per cent.

Cumulative Growth from April to December 2025-26

The cumulative growth of the ICI during April to December 2025-26 stood at 2.6 per cent over the same period in the previous year. Steel production showed the highest cumulative growth of 9.5 per cent, followed by Cement at 8.8 per cent. Fertiliser and Electricity production registered cumulative growth of 1.7 per cent and 0.3 per cent, respectively.

Coal production declined slightly by 0.7 per cent, while Crude Oil and Natural Gas output fell by 1.9 per cent and 3.2 per cent, respectively. Petroleum Refinery Products showed a marginal cumulative growth of 0.1 per cent.

Insights and Implications

The final growth rate of the ICI for November 2025 was recorded at 2.1 per cent. The monthly and cumulative figures indicate that while most sectors showed positive growth in December, energy-related sectors such as Crude Oil and Natural Gas continue to face challenges, affecting overall industrial output.

Coal, with a weight of 10.33 per cent in the ICI, rose 3.6 per cent in December but showed a slight decline of 0.7 per cent cumulatively. Crude Oil, accounting for 8.98 per cent of the index, declined both in December and cumulatively. Natural Gas, with a weight of 6.88 per cent, also recorded declines in both monthly and cumulative production.

Among the larger sectors, Petroleum Refinery Products, which have a weight of 28.04 per cent in the index, saw a small monthly decline of 1.0 per cent but a slight cumulative growth of 0.1 per cent.

Fertilisers, with a weight of 2.63 per cent, showed both monthly and cumulative growth. Steel, with a significant weight of 17.92 per cent, continued to show robust growth in December and cumulatively.

Cement, weighing 5.37 per cent, maintained strong momentum with 13.5 per cent growth in December and 8.8 per cent cumulative growth. Electricity, the second largest sector with a weight of 19.85 per cent, rose 5.3 per cent in December and 0.3 per cent cumulatively.

The ministry said the ICI data provides insights into industrial trends and the performance of key sectors, which are crucial for economic planning and policymaking.

The growth in Steel, Cement, and Electricity indicates continued momentum in infrastructure and industrial activities, while the declines in Crude Oil and Natural Gas highlight the challenges in energy production.

Overall, the December data reflect a positive trend in the core sectors, driven by strong growth in metals, construction materials, and electricity, supporting industrial activity in the country.