Data Alert
Dec eight core industries' growth rises to 4-month high of 3.7%
This story was originally published at 17:43 IST on 20 January 2026
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--India Dec eight core industries' growth 3.7%
--India Dec eight core industries' growth 3.7% vs 2.1% in Nov
--India Apr-Dec eight core industries' growth 2.6% vs 4.5% year ago
NEW DELHI – The output of India's eight core industries grew at a four-month high pace of 3.7% on year in December, led by the steel, cement, and electricity sectors, data released Tuesday by the commerce ministry showed.
Factory output had grown 5.1% in December 2024 and the November print was revised higher to 2.1% from the provisional estimate of 1.8%.
Sequentially, the index of eight core industries rose 8.2% in December, the biggest month-on-month rise in nine months. Core sector output has grown 2.6% in Apr-Dec, lower than 4.5% in the same period a year ago.
Only three of the eight core industries saw higher production growth in December compared with November. The output of cement sector saw the highest on-year growth last month at 13.5%, but it was lower the 14.6% rise in Novemebr.
Steel sector output grew 6.9% on year in December, quicker than 6.7% rise in the previous month. Electricity sector output rose to a nine-month high of 5.3% last month compared with a contraction of 1.5% in November.
"The frontend spending by the government on roads and railways has added to demand. Further, this growth is impressive as it comes over a higher base too," Bank of Baroda Chief Economist Madan Sabnavis said in a note. "This is also indicative of private sector involvement in infrastructure which is borne out by the higher investment announcements witnessed this year so far. It may be expected that this momentum will be maintained in the coming months."
The output of crude oil fell year-on-year for the fourth consecutive month in December, while natural gas production was down for the eighteenth month in a row. Crude oil output fell 5.6% on year in December, the biggest fall since May 2021. Natural gas production fell 4.4% in December against a contraction of 2.5% in November.
Based on the eight core sector output growth in December, the Index of Industrial Production growth could be around 4-5% for December compared with 6.7% in November, economists said. The eight core industries have a combined weight of 40.3% in the IIP.
The following tables give the year-on-year changes in the index of the eight infrastructure sectors in December:
| December 2025 | November 2025 | December 2024 | |
| Coal | 3.6% | 2.1% | 5.3% |
| Crude oil | (-)5.6% | (-)3.2% | 0.6% |
| Natural gas | (-)4.4% | (-)2.5% | (-)1.8% |
| Refinery products | (-)1.0% | (-)0.9% | 2.8% |
| Fertilisers | 4.1% | 5.6% | 1.7% |
| Steel | 6.9% | 6.7% | 7.3% |
| Cement | 13.5% | 14.6% | 10.3% |
| Electricity | 5.3% | (-)1.5% | 6.2% |
| Overall | 3.7% | 2.1% | 5.1% |
| Apr-Dec 2025-26 |
Apr-Dec 2024-25 |
|
| Coal | (-)0.7% | 6.2% |
| Crude oil | (-)1.9% | (-)2.1% |
| Natural gas | (-)3.2% | 0.8% |
| Refinery products | 0.1% | 2.7% |
| Fertilisers | 1.7% | 1.6% |
| Steel | 9.5% | 6.8% |
| Cement | 8.8% | 4.0% |
| Electricity | 0.3% | 5.4% |
| Overall | 2.6% | 4.5% |
Source: Ministry of Commerce and Industry
End
Reported by Shubham Rana
Edited by Tanima Banerjee
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