SDG 9: Industry, Innovation & Infrastructure | SDG 12: Responsible Consumption & Production
Institutions: Ministry of Commerce & Industry
The combined Index of Eight Core Industries (ICI)-which makes up 40 percent of the weight of the Index of Industrial Production-expanded 6.3 percent (provisional) in August 2025 compared to a year earlier. The growth was led by steel (14.2 percent), coal (11.4 percent), and cement (6.1 percent), reflecting strong demand from infrastructure and construction. Fertilizers (4.6 percent), petroleum refinery products (3.0 percent), and electricity (3.1 percent) also grew. In contrast, crude oil (-1.2 percent) and natural gas (-2.2 percent) continued to decline, extending a long-term weakness in India’s domestic hydrocarbons.
For April–August 2025-26, the ICI shows a 2.8 percent increase over last year. The latest release also revised July 2025 growth upward to 3.7 percent, signaling stronger underlying momentum than previously estimated.
The figures highlight India’s growth story as infrastructure sectors remain robust, supporting employment and capital formation. However, the persistent decline in crude oil and gas underscores structural dependence on imports, raising concerns for energy security and balance of payments. Such divergence in sectoral performance reveals where the economy’s strengths lie (steel, coal, cement) and where vulnerabilities persist (oil, gas). Monitoring these trends helps in understanding the policy challenges of industrial diversification, clean energy transition, and long-term fiscal sustainability.
The Index of Eight Core Industries (ICI) is a monthly measure of output in eight key sectors that are considered the backbone of India’s economy: coal, crude oil, natural gas, petroleum refinery products, fertilizers, steel, cement, and electricity.
Together, these industries account for about 40% of the Index of Industrial Production (IIP), making ICI a lead indicator of industrial performance.
Strong growth in ICI often signals rising demand in infrastructure, housing, energy, and manufacturing.
Weakness in any core sector can act as a drag on overall industrial growth, influencing GDP, jobs, and investment trends.
Policymakers, investors, and planners track ICI closely because it provides early signals of economic momentum before GDP numbers are released.
In simple terms, the ICI is like an economic “pulse check”; if these eight sectors are healthy, the broader industrial economy is likely to grow strongly too.
Follow the full update here: PIB: Index of Eight Core Industries for August 2025
Primary Data Source: DPIIT – Index of Eight Core Industries (August 2025 PDF)