Core sector output stalls in October; slips to 14-month low

Core sector growth in October

India’s core sector growth stalled in October 2025, slipping to 0 percent, its lowest reading in 14 months, compared with 3.3 percent in September, according to data released by the Ministry of Commerce. The weak print reflects a broad loss of momentum across key industrial categories, even as a few heavyweights such as steel and cement continued to expand.

The eight core industries — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity — together account for 40 percent of the Index of Industrial Production (IIP).

Energy-heavy sectors drag index into stagnation

The sharpest pullback came from coal, where output contracted 8.5 percent, reversing the surge seen in August. The decline was exacerbated by a 7.6 percent fall in electricity generation, reflecting lower thermal output.

Natural gas production dropped 5 percent, deepening its contraction streak, while crude oil output slipped 1.2 percent, marking yet another month of decline in India’s hydrocarbons sector.

Refinery products provided a rare spot of relief, rising 4.6 percent after a two-month contraction. Fertilisers registered a solid 7.4 percent rise, helped by pre-rabi stocking.

Steel and cement remain bright spots

Steel remained the strongest performer, growing 6.7 percent, driven by robust construction activity, infrastructure rollouts and auto-sector demand. Cement output also grew 5.3 percent, continuing its positive trend after the monsoon phase-out.