Performance of Eight Core Industries in India: Mixed Growth Trends for December 2025
SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation and Infrastructure
Ministry of Commerce and Industry | Office of the Economic Adviser
The combined Index of Eight Core Industries (ICI) for December 2025 recorded a growth rate of 5.3% (provisional) compared to the same month in 2024, reflecting resilient but divergent trends across India’s industrial base. Steel, coal, and electricity remained the primary growth engines, while crude oil and natural gas faced structural headwinds. For the cumulative period of April to December 2025, the ICI showed an overall increase of 4.8% (provisional) over the corresponding period of the previous year. These industries collectively account for 40.27% of the weight of items included in the Index of Industrial Production (IIP), making them a critical barometer for the health of the broader economy.
Key Sectoral Performance (December 2025)
Coal Production: Registered a robust increase of 8.7% in December 2025. Its cumulative index for April-December 2025 rose by 7.4% over the previous year.
Steel Production: Increased significantly by 9.2%, driven by strong domestic demand in the infrastructure and automotive sectors.
Electricity Generation: Showed a steady growth of 6.1% as industrial activity maintained momentum throughout the quarter.
Cement Production: Recorded an increase of 4.5%, supported by continued government spending on residential and commercial construction projects.
Fertilizer Production: Grew by 3.8%, ensuring adequate supply for the rabi agricultural season.
Petroleum Refinery Products: Experienced a marginal increase of 1.4% in production during the month.
Crude Oil and Natural Gas: Both sectors faced minor contractions, with Crude Oil declining by 1.1% and Natural Gas by 0.8%, highlighting the need for enhanced domestic exploration and recovery efforts.
What is the ‘Index of Eight Core Industries’ and why is it a lead indicator for the Indian economy? The ICI is a monthly statistical measure that tracks the production performance of eight critical sectors: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity. It uses a base year of 2011-12=100. Its significance lies in the fact that these sectors represent the “foundational” inputs for almost all other industrial activities. Because they comprise over 40% of the total Index of Industrial Production (IIP) weight, any volatility in the ICI provides an early signal of shifts in the broader manufacturing and industrial output of the country, allowing policymakers to calibrate economic interventions in real-time.
Policy Relevance
The performance of the core sectors directly impacts India’s ability to achieve its “Viksit Bharat” infrastructure and energy self-reliance goals.
Strategic Impact:
Infrastructure Momentum: Strong growth in Steel and Cement confirms that the national infrastructure pipeline remains active, supporting long-term productivity.
Energy Security Priorities: The continued decline in Crude Oil and Natural Gas production emphasizes the policy urgency of the PM Gati Shakti and Hydrocarbon Exploration and Licensing Policy (HELP) to reduce import dependency.
Industrial Decarbonization: Robust Electricity growth provides a window for the Ministry of Power to accelerate the integration of renewable energy into the grid without compromising industrial supply.
Macro-Fiscal Stability: As a lead indicator for the IIP, steady ICI growth supports a positive outlook for Corporate Tax collections and GST revenues linked to industrial manufacturing.
Follow the full news here: INDEX OF EIGHT CORE INDUSTRIES (BASE YEAR: 2011-12=100) FOR DECEMBER, 2025