India’s industrial growth moderated in September 2025, as the Index of Eight Core Industries (ICI) rose 3.0% year-on-year, showing resilience in steel, cement, and electricity, but weakness in energy-related sectors such as coal, crude oil, and natural gas.
According to data released by the Ministry of Commerce and Industry, the cumulative growth for April–September 2025–26 stood at 2.9%, compared to 4.3% in the same period last year. The previous month’s growth figure for August 2025 was revised upward to 6.5%.
Strong Steel Output Lifts Industrial Momentum
Steel remained the biggest growth driver, with production jumping 14.1% in September, supported by sustained infrastructure spending and recovery in the manufacturing sector. Cement output also rose 5.3%, reflecting continued activity in construction and housing projects.
Electricity generation increased 2.1%, indicating stable demand across industrial and domestic sectors. Fertilizer production recorded a modest 1.6% rise, helping maintain momentum in the agriculture-linked input sector ahead of the Rabi season.
Fossil Fuel and Refinery Output Decline
Four of the eight industries registered negative growth. Coal production fell 1.2%, crude oil output declined 1.3%, and natural gas dropped 3.8%—all pointing to subdued energy sector performance. Refinery production also contracted 3.7%, showing weaker throughput in petroleum refining despite steady domestic demand.
On a cumulative basis, coal, crude oil, natural gas, and refinery products saw contractions, underscoring continued challenges in the upstream hydrocarbon space.
Cumulative Trend and Economic Outlook
During April–September 2025–26, steel production surged 11.0%, and cement grew 7.7%, while most energy industries lagged. Economists say this pattern highlights India’s structural shift towards infrastructure-led demand, even as supply constraints persist in fossil fuel sectors.
The Eight Core Industries coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity account for 40.27% of the Index of Industrial Production (IIP).
The next release, covering data for October 2025, is scheduled for November 20, 2025.
At a Glance: Sector-wise Growth in September 2025 (YoY)
- Steel: +14.1%
- Cement: +5.3%
- Electricity: +2.1%
- Fertilizers: +1.6%
- Coal: -1.2%
- Crude Oil: -1.3%
- Natural Gas: -3.8%
- Refinery Products: -3.7%
JharkhandInc Insight:
The strong performance of steel and cement indicates steady infrastructure activity, a trend that could benefit mineral-rich states like Jharkhand through higher demand for iron ore, coal, and allied raw materials. However, the contraction in coal output—key to Jharkhand’s mining economy—may warrant policy attention to ensure supply stability and efficiency in the coming quarters.
