India’s infrastructure output growth slows sharply to 0.5% in April

Core sector growth drops from 4.6% in March, driven by declines in crude oil and fertiliser output.

May 21, 2025

The core sector accounts for 40% of the country’s industrial production and tracks eight major industries

Cement and coal production saw healthy increases of 6.7% and 3.5%, respectively

Steel output grew 3% in April compared to the same month last year

Crude oil and fertiliser production declined by 2.8% and 4.2%, respectively, dampening overall performance

India’s infrastructure output, a key indicator that tracks activity across eight core sectors, registered a modest annual growth of 0.5% in April, a sharp deceleration from the 4.6% recorded in March, according to data released by the Ministry of Commerce & Industry on Tuesday.

The index covers coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity, and collectively accounts for about 40% of the country’s overall industrial production.

Cement production showed the strongest performance in April with a 6.7% year-on-year increase. Steel output also rose by 3%, while coal production, which has a weightage of 10.33% in the index, grew by 3.5%.

On the other hand, crude oil output contracted by 2.8% in April, dragging down the overall index. Fertiliser production, which holds a 2.63% weightage, fell by 4.2%, following a robust 8.8% increase in the previous month.

Natural gas output rose marginally by 0.4%, while electricity generation edged up 1% in April, significantly lower than the revised 6.2% increase seen in March.

The cumulative growth of the core industries index for the financial year April 2024 to March 2025 stood at 4.5%, compared to the same period in the previous year.

Source: Economic Times

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