Core infrastructure sector growth slows to 3.8% in March

India’s core infrastructure sectors posted a slower growth of 3.8 per cent in March 2025, compared to 6.3 per cent in the same month a year ago, according to official data released on Monday. However, the figure showed a slight improvement over February’s 3.4 per cent growth.

The moderation in March was largely due to a decline in the output of crude oil and natural gas, while key segments like coal, refinery products, steel, and electricity also saw a deceleration in their growth rates.

Sector-wise Performance in March:

• Coal: Up 1.6%
• Refinery products: Up 0.2%
• Steel: Up 7.1%
• Electricity: Up 6.2%
• Fertiliser: Jumped 8.8% (compared to a 1.3% decline in March 2024)
• Cement: Grew by 11.6% (from 10.6% in March last year)

Crude oil and natural gas were the only sectors to register a contraction in output during the month.

For the full financial year 2024-25 (April–March), the cumulative growth of the eight core sectors stood at 4.4 per cent, sharply lower than 7.6 per cent in the previous fiscal.

These eight sectors—coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity—account for 40.27 per cent of the Index of Industrial Production (IIP), making them a key indicator of overall industrial performance. The IIP index is released by Ministry of Commerce & Industry.