India's 8 core sectors experienced a growth of 2% in July 2025, lower than the 2.2% in June and 6.3% in July 2024. Coal, crude oil, and natural gas witnessed a decline, while fertilizer, steel, and cement production increased. The early arrival of the monsoon and its impact on the energy sector were the primary reasons for the slowdown in growth.
Core Sector: According to data released by the Ministry of Commerce, India's 8 core sectors grew by 2% in July 2025, compared to 2.2% in June and 6.3% in July last year. Coal experienced the largest decline, while fertilizer, steel, and cement production increased. The core sector's growth was hampered by the early monsoon and a decrease in output in the energy sector. Among the months from July to July, only August 2024 recorded negative growth.
Status of Production in Core Sectors
- Coal: Coal production decreased by 12.3% in July 2025 compared to the previous year. A decline was also observed in June, but it intensified in July. This continuous decrease in the coal sector may impact energy production and other industrial activities.
- Crude Oil: Crude oil production decreased by 1.3% in July 2025 compared to July 2024. In June, this decrease was 1.2%. During the period from April to July 2025-26, production was 1.7% lower than the previous year.
- Natural Gas: Natural gas production decreased by 3.2% in July 2025 compared to the previous year. The period from April to July saw a decrease of 2.6% compared to the previous year.
- Petroleum Refinery Products: The production of petroleum refinery products decreased by 1% in July 2025.
- Fertilizer: Fertilizer production increased by 2% in July. This is a positive sign for the agricultural sector.
- Steel: Steel production saw an increase of 12.8% in July 2025 compared to the previous year.
- Cement: Cement production increased by 11.7% in July 2025.
- Electricity: Electricity generation saw a slight increase of 0.5% in July.
Performance of the Core Sector in the Past Year
In the past 13 months, the core sector's growth was negative only in August 2024. In July 2024, growth was more than 6%. In April 2025, growth fell to 1%, but there was improvement afterward. Growth slowed down again in July, indicating that the pace of production and demand in some sectors has not fully normalized.
Largest Decline in Coal
This month, the largest decline in the core sector was in coal. Meanwhile, fertilizer, steel, and cement production saw good growth. The decline in natural gas and petroleum products has affected energy production. Electricity production saw a slight increase, which helped meet domestic demand.
The growth of the core sector is a major indicator of the country's industrial activities. July's data shows that volatility in energy production and weather-related production fluctuations continue. However, the increase in steel, cement, and fertilizer has maintained stability in the construction and agricultural sectors.
