Core sector output grows 1.8% in November, rebounds from October contraction

New Delhi: Output of core infrastructure sectors that include cement, steel, fertilisers and energy products, posted a growth of 1.8% in November, marking a rebound from the contraction in the previous month, official data showed on Monday.

The rebound was led by strong growth in output of cement, steel, fertilisers and coal. Cement production in November was 14.5% higher, when compared with the same month last year. Steel output was 6.1% higher, while production of fertilisers and coal was 5.6% and 2.1% higher, respectively.

The key infrastructure sector as measured by the Index of Eight Core Industries had posted a contraction of 0.1% on a year-on-year basis in October.

While there is improvement in the growth on a sequential basis, on a year-on-year basis the situation is worse. In November 2024, core sector growth was recorded at 5.8%.  The cumulative growth in output of the eight core industries during the April-November period of the current fiscal stood at 2.4%, as per Ministry of Commerce and Industry data.

The eight core industries that include coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, have a 40.27% weight in the Index of Industrial Production (IIP).

“While core sector growth expectedly improved in November 2025, after the festive season, it remained tepid at 1.8%. The sequential improvement in year-on-year growth between October and November was led by a majority of the sectors, with a particularly sharp pickup in cement (to 14.5% from 5.2%),” said ICRA Chief Economist Aditi Nayar.

“Given the base effects and shift in the festive calendar, it would be more prudent to assess the average for October and November 2025, which stands at a meagre 0.8%, lower than the average growth of 3.0% recorded in H1FY2026. Based on the core sector growth and other high-frequency indicators, we expect the IIP to rise by 3.5-4.5% in November 2025,” she added.

There was contraction in production of energy-linked segments. Crude oil production in November was 3.2% lower, when compared with the same month last year.

Natural gas production declined 2.5% year-on-year, while petroleum refinery output was 0.9% lower, when compared with the same month last year.

Electricity generation, which has 19.85% weight in the index of eight core industries, fell by 2.2% in November, over the same month last year. In the first eight months of the current fiscal, electricity output was 0.3% lower, when compared with the same period last year.