<p>New Delhi: Core infrastructure sectors that include electricity, cement, steel, oil and gas, posted a tepid growth of 1.7 per cent in June indicating continued weakness in the industrial production, as per data released by the Ministry of Commerce and Industry on Monday.</p>.<p>The June growth data was the best in three months, but was sharply lower than the 5 per cent expansion recorded in June 2024. The combined Index of Eight Core Industries had posted a growth of 1.2 per cent in May.</p>.<p>Five out of the eight sectors that are part of the core industries recorded contraction in output on a year-on-year basis.</p>.<p>“Although the year-on-year growth in core output improved slightly to 1.7 per cent in June 2025 from 1.2 per cent in May 2025, it remained decidedly tepid, with as many as five of the eight sectors recording a contraction in their output in the month,” said Aditi Nayar, Chief Economist, ICRA.</p>.<p>Output of steel in June was 9.3 per cent higher when compared with the same month of the last year. Cement production increased by 9.2 per cent and refinery products output by 3.4 per cent year-on-year. “The growth in volumes of these segments has been quite healthy in Q1 FY2026, which implies that the construction sector is poised to record a robust GVA growth in the quarter,” said Nayar.</p>.India-UK signing of trade pact on July 24; Piyush Goyal to accompany PM Modi.<p>Sectors that reported contraction include coal (-6.8 per cent), electricity (-2.8 per cent), natural gas (-2.8 per cent), crude oil (-1.2 per cent) and fertilisers (-1.2 per cent).</p>.<p>“While an elevated base weighed upon coal output, excess rains in the latter half of June 2025 impacted electricity generation,” Nayar added.</p>.<p>The core sector has a weight of 40.27 per cent in the Index of Industrial Production (IIP). “The tepid growth in infrastructure sector output is expected to keep the IIP growth around 1.5 per cent in June 2025,” said Paras Jasrai, Associate Director at India Ratings and Research.</p>.<p>The daily power generation was up 2.1 per cent year-on-year as of 20 July 2025. This along with an unfavourable base effect (July 2024: 6.3 per cent) would keep the core sector output growth around 2 per cent in July 2025, Jasrai added.</p>.<p>Cumulative growth of the eight core sectors in the April-June period of the current fiscal stood at 1.3 per cent, which is sharply lower than 6.2 per cent recorded in the corresponding period of the last year. </p>
<p>New Delhi: Core infrastructure sectors that include electricity, cement, steel, oil and gas, posted a tepid growth of 1.7 per cent in June indicating continued weakness in the industrial production, as per data released by the Ministry of Commerce and Industry on Monday.</p>.<p>The June growth data was the best in three months, but was sharply lower than the 5 per cent expansion recorded in June 2024. The combined Index of Eight Core Industries had posted a growth of 1.2 per cent in May.</p>.<p>Five out of the eight sectors that are part of the core industries recorded contraction in output on a year-on-year basis.</p>.<p>“Although the year-on-year growth in core output improved slightly to 1.7 per cent in June 2025 from 1.2 per cent in May 2025, it remained decidedly tepid, with as many as five of the eight sectors recording a contraction in their output in the month,” said Aditi Nayar, Chief Economist, ICRA.</p>.<p>Output of steel in June was 9.3 per cent higher when compared with the same month of the last year. Cement production increased by 9.2 per cent and refinery products output by 3.4 per cent year-on-year. “The growth in volumes of these segments has been quite healthy in Q1 FY2026, which implies that the construction sector is poised to record a robust GVA growth in the quarter,” said Nayar.</p>.India-UK signing of trade pact on July 24; Piyush Goyal to accompany PM Modi.<p>Sectors that reported contraction include coal (-6.8 per cent), electricity (-2.8 per cent), natural gas (-2.8 per cent), crude oil (-1.2 per cent) and fertilisers (-1.2 per cent).</p>.<p>“While an elevated base weighed upon coal output, excess rains in the latter half of June 2025 impacted electricity generation,” Nayar added.</p>.<p>The core sector has a weight of 40.27 per cent in the Index of Industrial Production (IIP). “The tepid growth in infrastructure sector output is expected to keep the IIP growth around 1.5 per cent in June 2025,” said Paras Jasrai, Associate Director at India Ratings and Research.</p>.<p>The daily power generation was up 2.1 per cent year-on-year as of 20 July 2025. This along with an unfavourable base effect (July 2024: 6.3 per cent) would keep the core sector output growth around 2 per cent in July 2025, Jasrai added.</p>.<p>Cumulative growth of the eight core sectors in the April-June period of the current fiscal stood at 1.3 per cent, which is sharply lower than 6.2 per cent recorded in the corresponding period of the last year. </p>