Core sector output growth slows down to eight-month low of 0.5% in April

Cement production rose by 6.7% in April this year as against 0.2% in the same month last year. File | Photo Credit: Reuters

The output of eight key infrastructure sectors slowed down to an eight-month low of 0.5% in April due to contraction in the production of crude oil, refinery products and fertiliser.

According to official data released on Tuesday (May 20, 2025), these eight sectors – coal, crude oil, refinery products, natural gas, steel, cement, electricity and fertiliser – expanded by 6.9% in April 2024.

In March this year, output of these sectors grew by 4.6%.

During the month under review, production of crude oil, refinery products and fertiliser recorded a negative growth.

The previous low growth rate was recorded in August 2024, when these sectors expanded by (-) 1.5%.

The growth rate in the production of coal, natural gas, steel, and electricity moderated to 3.5%, 0.4%, 3%, and one%, respectively, in April 2025.

However, cement production rose by 6.7% in April this year as against 0.2% in the same month last year.

Commenting on the data, Aditi Nayar, Chief Economist, ICRA Ltd, said the performance of the core sector “deteriorated significantly” in April.

“Based on the tepid rise in the core sector and the performance of the other available high frequency indicators, ICRA expects the IIP (index of industrial production) growth to moderate sharply to about 1% in April,” she said.

The eight core sectors contribute 40.27% to the IIP, which measures overall industrial growth.

Published - May 20, 2025 07:10 pm IST