India’s eight core sectors recorded a significant slowdown in growth in May 2025, expanding just 0.7 per cent — the lowest growth rate in nine months, according to the latest official data released on Friday. This sharp deceleration contrasts starkly with the 6.9 per cent growth recorded in the same month last year.
The previous low point was in August 2024, when the output of these critical sectors contracted by 1.5 per cent. In comparison, growth in April 2025 stood at 1 per cent, indicating a further slowdown in May.
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The eight core sectors comprise coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity — collectively accounting for nearly 40 per cent of the weight in the country’s industrial production index. As such, their performance is considered a key barometer of India’s industrial and economic health.
Breaking down the May figures, four sectors — crude oil, natural gas, fertilisers, and electricity — recorded negative growth, dragging overall sectoral expansion lower. The contraction in electricity output may signal subdued demand or production issues. Fertiliser output decline could raise concerns for the agriculture sector as sowing season approaches.
On the positive side, refinery products and cement output grew during the month, providing some offset to the overall sluggish performance. Increased refinery product output could be linked to rising fuel demand, while cement growth suggests ongoing activity in the construction and infrastructure sectors.
Cumulatively, during the first two months of the current fiscal year (April-May 2025), the eight core sectors expanded by just 0.8 per cent, a steep fall from 6.9 per cent growth in the same period last fiscal year. This slowdown points to mounting challenges in key industrial sectors amid broader economic uncertainties.
Economists and policymakers will be closely monitoring these trends, as sustained sluggishness in core infrastructure sectors could weigh on overall GDP growth and impact related industries and employment.
