NewsStocksIndia's Core Sector Growth Accelerates to 3.7% in December 2025, Driven by Cement and SteelIndia's Core Sector Growth Accelerates to 3.7% in December 2025, Driven by Cement and Steel
India's core sector growth accelerated to 3.7% in December 2025 from 2.1% in November, driven primarily by cement (13.5%) and steel (6.9%) sectors. Electricity generation recovered with 5.3% growth, while energy sectors faced challenges with crude oil declining 5.6% and natural gas falling 4.4%. Cumulative April-December 2025-26 data shows steel and cement maintaining strong momentum at 9.5% and 8.8% growth respectively.
*this image is generated using AI for illustrative purposes only.
India's eight core industries demonstrated renewed momentum in December 2025, with growth accelerating to 3.7% compared to 2.1% in the previous month. The data, announced on Tuesday, January 20, reflects a broad-based recovery led by key infrastructure sectors, particularly cement and steel.
Sector-wise Performance Analysis
The December 2025 performance showed significant variation across different core sectors:
| Sector | December 2025 Growth (YoY) | Performance Status |
|---|---|---|
| Cement | +13.50% | Strong expansion |
| Steel | +6.90% | Robust growth |
| Electricity | +5.30% | Recovery from November contraction |
| Fertiliser | +4.10% | Steady growth |
| Coal | +3.60% | Moderate expansion |
| Petroleum Refinery | -1.00% | Marginal decline |
| Natural Gas | -4.40% | Continued weakness |
| Crude Oil | -5.60% | Significant contraction |
Key Growth Drivers
Cement emerged as the standout performer with 13.5% year-on-year growth, indicating strong construction and infrastructure activity. Steel production maintained robust momentum at 6.9% expansion, reflecting healthy demand from manufacturing and construction sectors.
Electricity generation showed a notable turnaround, rising 5.3% after experiencing contraction in November. This recovery suggests improved industrial activity and power demand across the economy.
Energy Sector Challenges
The energy sector presented a mixed picture, with traditional fossil fuel segments facing headwinds. Crude oil production declined 5.6%, while natural gas output fell 4.4%, continuing the trend of weakness in domestic energy supplies. Petroleum refinery production also registered a marginal 1% decline during the month.
Cumulative Performance Trends
For the April-December 2025-26 period, the core sectors demonstrated sustained growth momentum:
| Sector | April-December 2025-26 Growth | Trend |
|---|---|---|
| Steel | +9.50% | Consistent strength |
| Cement | +8.80% | Robust expansion |
| Electricity | +0.30% | Marginal growth |
The cumulative data reinforces the strong performance of steel and cement sectors throughout the fiscal year period, with steel maintaining nearly double-digit growth rates.
Data Reliability and Methodology
The December 2025 figures remain provisional and are subject to revision based on updated information from source agencies. November 2025 data has been finalised, providing a reliable baseline for comparison. Index numbers undergo regular revision to incorporate the most accurate data from various source agencies, ensuring the reliability of growth calculations.
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