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India’s Core Sectors Grow 3.7% in December, Hitting Four-Month High

Construction-led gains contrast with hydrocarbon weakness, keeping April–December growth to 2.6%.

Overview

  • Government data show a 3.7% year-on-year rise in December 2025, up from a revised 2.1% in November and marking a clear sequential improvement.
  • Cement jumped 13.5%, steel rose 6.9% and electricity increased 5.3%, with fertilisers up 4.1% and coal up 3.6%.
  • Crude oil fell 5.6%, natural gas declined 4.4% and refinery products slipped 1.0%, curbing the overall pace of expansion.
  • Cumulative output growth for April–December stands at 2.6%, below 4.5% a year earlier, and December’s print trails December 2024’s 5.1%.
  • The eight core industries make up 40.27% of the IIP basket; the December reading is provisional, and ICRA expects December IIP growth to moderate to about 4.5–5% from 6.7% in November.