New Delhi: India’s Index of Eight Core Industries (ICI) grew by 1.8% (provisional) in November compared to the same month last year, marking a recovery after a marginal contraction in October. The improvement comes after the final growth rate for October was recorded at (-) 0.1%. On a cumulative basis, the core sector expanded by 2.4% during April-November 2025-26 over the corresponding period of the previous year.
The eight core industries — coal, crude oil, natural gas, petroleum refinery products, fertilizers, steel, cement and electricity — together account for 40.27% of the total weight of the Index of Industrial Production (IIP), making their performance a critical indicator of broader industrial activity. November’s growth was primarily driven by strong output in cement, steel, fertilizers and coal, even as energy-related sectors continued to show weakness.
Cement production recorded the sharpest increase, rising 14.5% year-on-year in November, reflecting sustained momentum in construction and infrastructure activity. Its cumulative growth during April-November stood at 8.2%, indicating robust demand from housing projects and public capital expenditure. Steel output also remained strong, increasing by 6.1% in November, while posting a cumulative growth of 9.7%, the highest among all core industries, pointing to healthy capacity utilization supported by government-led infrastructure spending and steady private sector demand.
Fertilizer production rose by 5.6% in November, with cumulative growth of 1.3%, suggesting stable agricultural input demand during the ongoing Rabi season. Coal production increased by 2.1% in November, although its cumulative index declined by 1.4%, indicating that recent gains have not fully offset the slowdown earlier in the financial year.
Oil & Gas
In contrast, crude oil production declined by 3.2% in November, with cumulative output down 1.3%, highlighting persistent challenges in domestic oil exploration and declining yields from mature fields. Natural gas production also contracted by 2.5% year-on-year in November, deepening its cumulative decline to 3.0%, which could have implications for downstream industries such as fertilizers and power generation.
Petroleum refinery products, the largest component of the ICI with a weight of 28.04%, recorded a 0.9% decline in November, although it managed a marginal cumulative increase of 0.2%, suggesting near-stagnation in refining activity. Electricity generation fell by 2.2% in November, with a cumulative decline of 0.3%, pointing to softer power demand or possible supply-side constraints during the period.
Overall, the November data underline a divergence within the core sector, with infrastructure- and manufacturing-linked industries such as cement and steel showing strong momentum, while energy-related sectors continue to weigh on overall performance.
If capital expenditure and construction activity remain strong, growth in cement and steel could help sustain moderate expansion in the core sector, although prolonged weakness in crude oil, natural gas and electricity may limit the pace of recovery in the coming months.
(Cover photo by Abhishek Kirloskar on Unsplash)