**India’s Core Sectors Grow by 6.3%, Highest in a Year**

*By Akash Pandey | Sep 22, 2025, 05:58 PM*

India’s eight key infrastructure sectors witnessed a robust growth of 6.3% in August 2025, marking the highest expansion in over a year. This information was revealed in data released by the Ministry of Commerce and Industry.

The growth rate matches the 6.3% recorded in July 2024, underscoring a strong rebound in core sector performance.

### Sectoral Growth Highlights

Coal, steel, and cement production were the main drivers behind this surge. Notably, coal output rose by an impressive 11.4% year-on-year (YoY), ending a sequence of declines seen in previous months.

Steel production demonstrated significant strength with a 14.2% increase, while cement production grew by 6.1%. Fertilizer output also posted a modest gain of 4.6%.

### Mixed Performance in Other Sectors

Despite the overall positive trend, certain sectors faced challenges. Crude oil production declined by 1.2%, and natural gas output fell by 2.2%. Refinery products registered a marginal growth of 3%, which slightly weighed down the overall index of the eight core industries.

Electricity generation increased by 3.1% in August, although this was somewhat lower compared to July’s strong performance.

### Significance of Core Sector Growth

The performance of these eight core sectors is critical as they collectively account for nearly 40% of the Index of Industrial Production (IIP). The strong growth in these sectors signifies a positive momentum in India’s industrial landscape, reflecting potential for sustained economic development in the coming months.
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