Core Industries index jumps to 13-month high at 6.3% in August 2025 on broad growth
/ 2 min read
The final growth rate of the Index of eight core industries for July 2025 was observed at 3.7%.
Core Industries index jumps to 13-month high at 6.3% in August 2025 on broad growth
In August 2025, the Index of Eight Core Industries surged by 6.3% compared to the previous year, driven by significant growth in steel, coal, cement, and other sectors. This marks a notable improvement from July's 3.7% growth, with the cumulative growth from April to August 2025-26 standing at 2.8%.
This summary is AI-generated, and Fortune India is not responsible for its content or any associated copyright issues.
The Core Industries Index experienced a 6.3% rise in August 2025, bolstered by strong performances in steel and coal. Despite declines in crude oil and natural gas, the cumulative growth from April to August 2025-26 remains positive at 2.8%.
The final growth rate of the Index of eight core industries for July 2025 was observed at 3.7%.
The combined Index of Eight Core Industries (ICI) increased by 6.3% (provisional) in August 2025 as compared to the Index in August 2024, as the production of steel, coal, cement, fertiliser, electricity and petroleum refinery products recorded positive growth in August 2025. Aided by a low base, the year-on-year (YoY) growth in core output improved to a 13-month high in August 2025 from 3.7% in July 2025.
The ICI measures the combined and individual performance of production of eight core industries, which comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).
Aditi Nayar, Chief Economist at ratings agency ICRA, says the uptick was particularly driven by coal, which witnessed an expansion of 11.4% in the month, following a double-digit contraction in July 2025. "Overall, five of the eight sectors, barring steel, cement, and electricity saw an improvement in their YoY growth performance in August 2025 vis-à-vis July 2025."
Nayar also says ICRA expects the IIP growth to print at 4.5-5.5% in August 2025, particularly aided by a turnaround in the performance of mining output, which has seen a contraction in every month during April-July 2025.
The final growth rate of the Index of eight core industries for July 2025 was observed at 3.7%. The cumulative growth rate of ICI during April to August 2025-26 stood at 2.8% (provisional) compared to the corresponding period of last year.
Recommended Stories
Here's how core sectors performed in terms of production in August 2025.
Coal: Coal production (weight: 10.33%) increased by 11.4% in August 2025 over August 2024. Its cumulative index declined by 0.7% during April to August 2025-26 over the corresponding period of the previous year.
{{#most-powerful-women-snapshot-individual.slug}} {{/most-powerful-women-snapshot-individual.slug}} {{^most-powerful-women-snapshot-individual.slug}} {{/most-powerful-women-snapshot-individual.slug}} {{#showRanking}} {{current-rank}} {{/showRanking}} {{#photo.0.url}}
{{name}}
Crude Oil: Crude Oil production (weight: 8.98%) declined by 1.2% YoY in August 2025. Its cumulative index declined by 1.7% during April to August 2025-26 over the corresponding period of the previous year.
Natural Gas: Natural gas production (weight: 6.88%) declined by 2.2%YoY in August 2025. Its cumulative index declined 2.5% during April to August 2025-26 over the corresponding period of the previous year.
Petroleum refinery products: Petroleum refinery production increased by 3%YoY in August 2025. Its cumulative index increased by 0.4% YoY during April to August 2025-26.
Fertilisers: Fertiliser production (weight: 2.63%) increased by 4.6% in August 2025 over August 2024. Its cumulative index declined by 0.8% YoY during April to August 2025-26.
Steel: Steel production (weight: 17.92%) increased 14.2% in August 2025 over August 2024. Its cumulative index increased 10.4%YoY during April to August 2025-26.
Cement: Cement production (weight: 5.37%) increased by 6.1%YoY in August 2025. Its cumulative index increased 8.4%YoY during April to August 2025-26.
Electricity: Electricity generation (weight: 19.85%) increased by 3.1%YoY in August 2025. Its cumulative index increased 0.5% YoY during April to August 2025-26.