New Delhi: India’s eight core industries showed a growth of 3 percent in September 2025 compared to the same month last year. The government released these numbers today, showing a mixed picture for the country’s industrial sector.
Four out of eight industries performed well this month. Steel led the pack with impressive growth, followed by cement, electricity and fertilizers. However, coal, crude oil, natural gas and petroleum refinery products saw their output drop.
Steel Industry Shines Bright
The standout performer was the steel sector. Production jumped by 14.1 percent in September 2025 compared to September 2024. This is the highest growth among all eight industries tracked in the index.
Looking at the six-month period from April to September, steel maintained strong momentum with 11 percent growth. This suggests healthy demand in construction and manufacturing sectors across the country.
Cement and Electricity Show Steady Progress
Cement production increased by 5.3 percent in September. The construction sector appears to be doing well, with cement showing consistent growth. For the April-September period, cement grew by 7.7 percent.
Electricity generation went up by 2.1 percent last month. Though this seems modest, it reflects steady demand from homes and industries. The cumulative growth for six months stands at 0.9 percent.
Where Industries Struggled
Not all sectors had good news. Coal production dropped by 1.2 percent in September. This happened despite coal being a major source of energy in India.
Crude oil output fell by 1.3 percent. Natural gas showed the steepest decline, down 3.8 percent from last year. These drops indicate ongoing challenges in the oil and gas sector.
Petroleum refinery products also saw production fall by 3.7 percent. This decline might affect fuel availability and pricing in coming months.
Fertilizer production managed a small increase of 1.6 percent. However, over six months, the sector showed a slight decline of 0.4 percent.
Understanding the Numbers
These eight industries together represent about 40 percent of the total industrial production in India. When they grow, it signals a healthy economy. When they decline, it raises concerns.
The government uses a base year of 2011-12, set at 100, to measure these changes. This helps track how much industries have grown or shrunk over time.
For the current financial year (April to September 2025), the overall growth rate stands at 2.9 percent. Last month, August 2025 showed stronger growth at 6.5 percent.
What Each Industry Weighs
Different industries have different importance in the overall index:
- Petroleum refinery products carry the highest weight at 28.04 percent
- Electricity comes next at 19.85 percent
- Steel holds 17.92 percent importance
- Coal accounts for 10.33 percent
- Crude oil represents 8.98 percent
- Natural gas has 6.88 percent weight
- Cement makes up 5.37 percent
- Fertilizers have the smallest share at 2.63 percent
Impact on Economy
These numbers matter because they show how India’s basic industries are performing. Steel growth suggests construction activity is strong. Cement demand points to infrastructure development.
However, declining oil and gas production raises questions about energy security. The country may need to import more, which affects foreign exchange and trade balance.
The fertilizer sector’s modest growth is crucial for farmers preparing for the next crop season. Any shortage could impact agricultural output.
Looking Ahead
The government will release October 2025 figures on November 20. Experts will watch whether steel can maintain its strong performance. They’ll also monitor if oil and gas sectors can reverse their decline.
Power generation numbers will be important as winter approaches and industrial activity picks up during the festival season.
These core industries serve as an early indicator of overall economic health. While 3 percent growth is positive, maintaining this momentum will require addressing challenges in the energy sector.
The data released today is provisional for September and will be finalized after verification from various agencies.
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