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India's eight core infrastructure sectors witnessed a sharp slowdown in growth, expanding only 2% in July 2025, compared to 6.3% in the same month a year ago. The latest government data showed that production was weighed down by declines in key segments such as coal, crude oil, natural gas, and refinery products. In June 2025, the sectors had reported a 2.2% growth rate. For the April-July period of the current fiscal year, the combined growth stood at 1.6%, a significant fall from 6.3% recorded during the same time last year.
India's eight core infrastructure sectors posted modest growth of 2% in July, marking a slowdown from the 6.3% expansion recorded in the same month last year, according to the data released by the government this past week. The figure also reflects a marginal dip from June's growth of 2.2%. Advertisement
The subdued performance in July was mainly due to a decline in production from five key sectors: coal, crude oil, natural gas, and refinery products. These sectors, which are vital for energy supply and industrial output, registered negative growth during the month.
In the first four months of the current fiscal year, covering April to July, overall output across the eight sectors grew by only 1.6%. This is a sharp contrast to the 6.3% growth achieved in the same period last year, underscoring a broad-based slowdown in infrastructure-linked industries.
The core sector data serves as a lead indicator for the Index of Industrial Production (IIP), which measures the overall industrial activity in the country. A sluggish performance here often reflects pressure on industries dependent on raw materials and energy, particularly manufacturing and heavy industries.
Economists have pointed out that the weaker performance in the coal, crude oil, and natural gas sectors could affect energy supply chains, while lower refinery production signals subdued demand for petroleum products. The slowdown may also pose concerns for sustaining momentum in industrial growth in the coming months, especially given the already tepid trend in previous months.
Source PTI
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