Key Takeaways
- Eight core sectors recorded 0% growth in October 2025, the worst performance in 14 months
- Growth declined from 3.8% in October 2024 and 3% in September 2025
- Mixed performance with four sectors expanding and four contracting
India’s eight core infrastructure sectors showed no growth in October 2025, marking their poorest performance in 14 months, according to official data released on Thursday. The flat reading represents a significant slowdown from the 3.8% expansion recorded in October 2024 and the 3% growth seen in September 2025.
Sector-Wise Performance Breakdown
The stagnation resulted from contrasting trends across different sectors. While steel, cement, fertilisers, and refinery products posted growth, these gains were offset by contractions in coal, electricity, natural gas, and crude oil production.
Growing Sectors:
- Fertilisers: Led with 7.4% growth, the fastest in seven months
- Steel: Expanded 6.7%, though this marked a six-month low for the sector
- Cement: Grew 5.3%, accelerating from 3.1% in October 2024
- Refinery Products: Increased 4.6%, the best performance in nine months
Contracting Sectors:
- Coal: Shrank 8.5% due to prolonged monsoons and cooler weather reducing power demand
- Electricity: Declined 7.6%, reflecting lower energy requirements
- Natural Gas: Slumped 5%, the worst performance in seven months
- Crude Oil: Production fell 1.2%
Economic Impact and Outlook
These eight core industries collectively account for 40.27% of the Index of Industrial Production (IIP), indicating potential broader economic implications. According to Aditi Nayar, chief economist at ICRA, the deterioration in mining and electricity segments suggests IIP growth could ease to 2.5-3.5% in October from September’s 4%.
“Even as the growth in manufacturing is likely to remain healthy aided by higher demand during the festive season on account of the GST rate rationalisation and the ensuing restocking,” she added.
