India’s Infrastructure Rebound : Steel, Coal, Cement Hit 13-Month High Growth

Core Sector Growth Hits 13-Month High
India’s eight core sectors recorded 6.3% growth in August 2025, the highest in 13 months, reflecting renewed momentum in infrastructure-driven industries. This is a sharp improvement from 3.7% in July and a contraction of 1.5% a year ago.

Steel, Coal, and Cement Lead the Surge
The growth was powered by a 14.2% rise in steel output, supported by demand from construction, automobiles, and manufacturing. Coal production increased by 11.4%, ensuring energy security for power-intensive industries, while cement output rose 6.1%, highlighting steady activity in housing and infrastructure projects.

Mixed Performance Across Other Sectors
While sectors like fertilisers, refinery products, and electricity showed moderate expansion, crude oil and natural gas remained in decline, underlining structural challenges in India’s energy mix.

Implications for the Economy Analysts believe the strong performance indicates that industrial output (IIP) for August may rise by 4.5–5.5%, reinforcing the resilience of India’s economy despite global uncertainties. The low base effect played a role, but the trend points to sustained demand revival driven by infrastructure spending and private investment.