India Core Sector Output Hits 15-Month High at 6.3% in August

India's infrastructure output experienced its fastest growth in over a year, rising 6.3% year-on-year in August 2025, driven primarily by strong expansions in steel, coal, and cement production. Steel production increased by 14.2%, coal output rose 11.4%, and cement grew 6.1%, while electricity generation also saw a modest gain of 3.1%. Despite these gains, some sectors such as crude oil and natural gas recorded declines, with crude oil output falling 1.2% and natural gas down 2.2%. The overall eight core infrastructure sectors, which comprise around 40% of India's industrial production index, showed a cumulative growth of 2.8% during April-August 2025, a slowdown compared to 4.6% in the same period the previous year. This growth rebound follows a weaker performance earlier in the year, including a low of 1.2% growth in May 2025. The mixed performance across sectors highlights ongoing challenges even amid strong recoveries in key industrial areas.