India’s core sector growth remains flat in October, weakest in 14 months

India’s infrastructure output was unchanged in October from a year earlier, its weakest performance in 14 months, as declines in coal, crude oil and electricity production offset gains in steel and refinery products, government data showed on Thursday.

The index, which tracks activity across eight sectors and makes up 40% of the country’s industrial production, grew at a revised 3.3% in September.

India’s infrastructure output contracted 1.5% year-on-year in August 2024.

Coal production declined by 8.5 per cent in October, 2025 over October, 2024. Likewise, crude oil production dipped by 1.2 per cent in October as compared to the same period last year.

Fertiliser production rose 7.4 per cent in October 2025 from a year earlier. Meanwhile, steel output expanded 6.7 per cent in October on an annual basis.

Excess rainfall impacted mining activity and power demand in October, while steel output decelerated sharply, said Aditi Nayar, an economist at ICRA.Given the contraction in the mining and electricity segments, the industrial output growth in October is expected to ease to 2.5%-3.5% from 4% in the previous month, she said.

Natural gas production slipped 5% in October 2025 from a year earlier. Petroleum refinery output, however, posted a 4.6% rise in October on a year-on-year basis.The ICI measures the combined and individual performance of production of eight core industries viz. Cement, Coal, Crude Oil, Electricity, Fertilizers, Natural Gas, Refinery Products and Steel. The Eight Core Industries comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP).