Core industry sector growth rises to 3.8% in March

Growth in the output of eight core infrastructure sectors increased to 3.8% in March, led by robust expansion in cement, steel and electricity production, as per data released by the Ministry of Commerce and Industry on Monday.

For February, the growth in the key infrastructure sector, measured as Index of Eight Core Industries, has been revised higher at 3.4% from 2.9% reported last month. The February print was the lowest in five months.

The core sector production growth was sharply down when compared with March 2024 when it stood at 6.3%. The average growth in the core infrastructure sector in the financial year 2024-25 stood at 4.4%.

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

ICRA Chief Economist Aditi Nayar said the expansion in the core sector was led primarily by the higher growth in electricity generation amid rising temperatures. “In disaggregated terms, the sequential trend was quite mixed, with fertilisers, coal, natural gas and refinery products reporting a moderation in their YoY growth in March 2025 relative to the previous month,” she said.

Based on the expansion in the core sector, ICRA expects the IIP growth to print at 3.0-3.5% in March 2025, Nayar added.

Electricity generation, which has 19.85% weight in the eight core sector, posted a 6.2% year-on-year increase in output in March. Cumulative growth in electricity production during April 2024 to March 2025 period stood at 5.1%.

Cement production increased by 11.6% in March 2025 over the same month last year. Its cumulative index increased by 6.3% during April to March, 2024-25 over the corresponding period of the previous year. Steel production posted a growth of 7.1% year-on-year during the month under review.