Core sector growth slows to 2% in July on weak coal, crude oil output

The output of India’s eight core sectors grew by 2% in July, mainly supported by robust expansion in steel and cement production, according to official data released on Wednesday.

The growth in the core sector, which contributes 40.27% to the Index of Industrial Production (IIP), was lower compared to 8.5% a year ago.

The Index of Eight Core Industries (ICI) measures the combined and individual performance of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity.

According to the data released by the commerce and industry ministry, production of coal, crude oil, natural gas and refinery products contracted in July, while steel, cement, fertilisers and electricity posted growth.

Coal output dropped by 12.3%, crude oil by 1.3%, natural gas by 3.2% and petroleum refinery products by 1%.

On the other hand, steel production surged 12.8%, cement 11.7%, fertiliser 2% and electricity generation 0.5%.

The cumulative growth rate of the eight core industries during April-July of the current fiscal stood at 1.6% as against 6.1% in the same period of last year. The final growth rate for June 2025 was revised to 2.2%.