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Business Standard
2 hours ago
- Business
- Business Standard
Core sectors' growth plunges to a 9-month low of 0.7% in May 2025
Output growth in India's eight core infrastructure industries plummeted to a nine-month low of 0.7 per cent in May from an upwardly revised figure of 1 per cent in April, with half the sectors clocking sharp contractions. Electricity generation contracted for the first time in nine months, with a 5.8 per cent drop that marked the sharpest downturn since June 2020. Crude oil output dipped 1.8 per cent, shrinking for the fifth straight month. Fertilisers production contracted for the second month in a row, with May's 5.9 per cent drop being the sharpest since February 2024, while natural gas output (-3.6 per cent) shrank for the 11th successive month. On the positive side, growth in cement production accelerated to 9.2 per cent in May, recovering from April's six-month low uptick of 6.3 per cent. Steel output also picked up pace and grew 6.7 per cent during the month, compared to a revised 4.4 per cent uptick recorded in April, which was the weakest in seven months. 'Clearly, the pick-up in infrastructure activity has aided steel production. Demand from construction and auto besides capital goods would account for this increase. Cement too did very well, which is reflective of the government activity in the capex space,' said Bank of Baroda chief economist Madan Sabnavis. Coal production growth decelerated a tad to 2.8 per cent from 3.5 per cent in April, while refinery products output grew 1.1 per cent in May after a 4.5 per cent contraction in the previous month. The eight core sectors constitute 40.27 per cent of the Index of Industrial Production (IIP), which had fallen to an eight-month low of 2.7 per cent in April from an upward revised figure of 3.94 per cent in March. Economists now expect industrial output growth to drop to 1.5 - 2 per cent in May. Base effects also affected last month's growth print, as the Index of Core Industries (ICI) had risen 6.9 per cent in May 2024, which was the highest in the past 13 months. 'Excess rains in the latter part of May 2025, owing to the early onset of the monsoon, likely weighed on the performance of the electricity and some of the mining sectors in the month. However, the YoY performance of the steel, cement, refinery products and crude oil sectors improved in May 2025 vis-à-vis April 2025, partly offsetting the deterioration in the performance of the other sectors,' said Rahul Agrawal, senior economist, ICRA Ratings.
Business Standard
5 hours ago
- Business
- Business Standard
Core sector expands by 0.7% on year in May, Crude oil and Natural Gas output falls
The combined Index of Eight Core Industries (ICI) increased by 0.7 per cent (provisional) in May, 2025 as compared to the Index in May, 2024. The production of Cement, Steel, Coal and Refinery Products recorded positive growth in May, 2025. The Eight Core Industries comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP). The final growth rate of Index of Eight Core Industries for February 2025, March 2025 and April 2025 was observed at 3.4, 4.5 and 1.0 per cent respectively. The cumulative growth rate of ICI during April to May, 2025-26 is 0.8 per cent (provisional) as compared to the corresponding period of last year. Here are the segment wise details of the Index of Eight Core Industries: Coal - Coal production (weight: 10.33 per cent) increased by 2.8 per cent in May, 2025 over May, 2024. Its cumulative index increased by 3.1 per cent during April to May, 2025-26 over corresponding period of the previous year. Crude Oil - Crude Oil production (weight: 8.98 per cent) declined by 1.8 per cent in May, 2025 over May, 2024. Its cumulative index declined by 2.2 per cent during April to May, 2025-26 over corresponding period of the previous year. Natural Gas - Natural Gas production (weight: 6.88 per cent) declined by 3.6 per cent in May, 2025 over May, 2024. Its cumulative index declined by 2.3 per cent during April to May, 2025-26 over corresponding period of the previous year. Petroleum Refinery Products - Petroleum Refinery production (weight: 28.04 per cent) increased by 1.1 per cent in May, 2025 over May, 2024. Its cumulative index declined by 1.7 per cent during April to May, 2025-26 over corresponding period of the previous year. Fertilizers - Fertilizer production (weight: 2.63 per cent) declined by 5.9 per cent in May, 2025 over May, 2024. Its cumulative index declined by 5.1 per cent during April to May, 2025-26 over corresponding period of the previous year. Steel - Steel production (weight: 17.92 per cent) increased by 6.7 per cent in May, 2025 over May, 2024. Its cumulative index increased by 5.5 per cent during April to May, 2025-26 over corresponding period of the previous year. Cement - Cement production (weight: 5.37 per cent) increased by 9.2 per cent in May, 2025 over May, 2024. Its cumulative index increased by 7.8 per cent during April to May, 2025-26 over corresponding period of the previous year. Electricity - Electricity generation (weight: 19.85 per cent) declined by 5.8 per cent in May, 2025 over May, 2024. Its cumulative index declined by 2.2 per cent during April to May, 2025-26 over corresponding period of the previous year.
Time of India
7 hours ago
- Business
- Time of India
Eight core industries record 0.7% growth in May, cement and steel production up, ET Manufacturing
Advt Advt The combined Index of Eight Core Industries ICI ) increased by 0.7 per cent in May compared to the same month last year, the Ministry of Commerce and Industry data showed on production of cement coal , and refinery products recorded positive growth last final growth rate of the Index of Eight Core Industries for February, March and April was observed at 3.4, 4.5 and 1.0 per cent, respectively, said the cumulative growth rate of the ICI during April to May, 2025-26 is 0.8 per cent (provisional) as compared to the corresponding period of last May, coal production increased by 2.8 per cent over May. Its cumulative index increased by 3.1 per cent during April to May, 2025-26 over the corresponding period of the previous refinery production increased by 1.1 per cent in May. Its cumulative index declined by 1.7 per cent during April to May, 2025-26 over the corresponding period of the previous year, as per the ministry production increased by 6.7 per cent and its cumulative index increased by 5.5 per cent during April to May, 2025-26 over the corresponding period of the previous production also rose by 9.2 per cent in May. Its cumulative index increased by 7.8 per cent during April to May, 2025-26 over the corresponding period of the previous generation declined by 5.8 per cent in May, and its cumulative index declined by 2.2 per cent during April to May, 2025-26 over the corresponding period of the previous ICI measures the combined and individual performance of the production of eight core industries -- coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and Eight Core Industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP), said the ministry.
Time of India
8 hours ago
- Business
- Time of India
Core sector slowdown: Core industries index slips to nine-month low of 0.7% in May; crude, gas and electricity drag index despite cement, steel gains
India's eight core infrastructure sectors grew by just 0.7% in May 2025, marking the slowest pace in nine months, according to official data released by the commerce ministry on Friday. The previous low was recorded in August 2024, when the index had contracted by 1.5%. In April this year, core sector growth had come in at 1%. The eight sectors had expanded by 6.9% in May 2024. The Index of Eight Core Industries (ICI) — which makes up 40.27% of the Index of Industrial Production (IIP) — was pulled down by contractions in crude oil, natural gas, fertilisers, and electricity. The data was released by the Department for Promotion of Industry and Internal Trade (DPIIT). During April–May FY26, the combined growth in the eight sectors stood at 0.8%, sharply lower than 6.9% in the same period last year. Among the individual sectors: Cement output rose 9.2% YoY in May, while steel production expanded 6.7% Coal and refinery products grew at 2.8% and 1.1% respectively Crude oil production contracted 1.8%, natural gas fell 3.6% Fertiliser output slipped 5.9%, while electricity generation dropped 5.8% The government will release the full IIP data later next month, which includes manufacturing, mining and electricity indices in addition to the eight core sectors. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
2 days ago
- Business
- Business Standard
India's cement production sees yearly gain, but monthly drop in April 2025
Cement production in India increased 6.66 per cent year-on-year to 39.88 million metric tonnes (MMT) in April 2025, up from 37.39 MMT in April 2024, according to data compiled from eight core infrastructure sectors by Thurro Research. These eight core industries—coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity—serve as barometers of industrial activity and contribute 40 per cent to the Index of Industrial Production (IIP). Sharp monthly decline from March highs Despite the year-on-year growth, April output dropped sharply from March 2025, when cement production hit a record high of 47.87 MMT—the highest in the 13-month review period. The April figure marked a 16.7 per cent fall, attributed to the typical slowdown in construction activity following year-end fiscal completions in March. The data originates from Enterprise Application Integration's eight core industries report dated 21 May 2025, a critical indicator of India's economic activity. Seasonal trends and government push drive volatility Monthly production figures reveal cyclical volatility, particularly a slowdown during the July–November monsoon and post-monsoon period. Output remained around or below 36 MMT during these months, with July marking the lowest production at 33.95 MMT—likely impacted by widespread monsoon disruptions to construction. A recovery began in December 2024, with production jumping to 41.16 MMT—up 19.6 per cent from November's 34.41 MMT. The uptrend continued in January (42.72 MMT) and February (41.84 MMT), culminating in March's peak of 47.87 MMT. Analysts attribute this surge to fiscal-end disbursals and acceleration in infrastructure execution by central and state governments, particularly in roads, railways, and housing. Industry sources credit the demand spike to progress under the National Infrastructure Pipeline (NIP), housing initiatives under the Pradhan Mantri Awas Yojana (PMAY), and growing private sector real estate activity in urban areas. April resilience amid seasonal slowdown Though April 2025 output declined from March, the 39.88 MMT figure outperformed all months between April and November 2024, except June. Analysts suggest that residual Q4 demand and pre-monsoon construction timelines kept consumption elevated. Sector experts also point to the Union Budget 2025–26's continued capital expenditure focus as a supportive factor for April's healthy print. Monsoon outlook and second-half recovery
