The core sector expanded 1% in April 2025.
“The uptick in growth in April related to March was largely driven by electricity generation, and cement, as well as a narrower drag from fertilisers,” said Rahul Agrawal, senior economist at ICRA.
Cement production emerged as a bright spot, rising to a three-month high of 9.4% in April from 4.7% in March. Electricity generation also increased to a three-month high of 4.1%.
Steel output grew 6.2% in April, lower than 7.7% the month before.
Growth weakened in five of the eight core industries, reflecting the impact of the West Asia conflict.
Coal recorded the steepest contraction of 8.7%. Fertilisers output shrank 8.6% in April compared with a sharper 24.6% decline in March. Natural gas production fell 4.3%, while crude oil and refinery products recorded a decline of 3.9% and 0.5%, respectively.
Agrawal noted that the contraction in five of the eight sectors suggests that economic activity in some sectors was impacted by the West Asia crisis, which could translate into subdued growth in the Index of Industrial Production (IIP).
The eight core industries account for 40.27% weight in IIP. India’s industrial production grew 4.1% year-on-year in March, down from 5.1% in February.
The new IIP series, with base year 2022-23, is set to be released on June 1.