India's key infrastructure sectors demonstrated strong performance in September 2025, registering a healthy 3 percent growth that signals continued economic momentum. The latest data from the Commerce Ministry reveals an encouraging trend across the eight core industries that form the backbone of the nation's industrial production.
Steel and Cement: The Powerhouse Performers
The standout performers in this growth story were undoubtedly the steel and cement sectors, both showing impressive expansion that underscores the government's intensified focus on infrastructure development. These two critical industries have emerged as the primary drivers of the core sector's upward trajectory, benefiting from increased construction activity and infrastructure projects nationwide.
Detailed Sectoral Performance
The Index of Eight Core Industries (ICI), which tracks production growth across crucial sectors including coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity, showed cumulative growth of 6.3 percent during the April-September period of the current fiscal year. This represents a slight moderation from the 7.8 percent expansion recorded in the same period last year, but still indicates solid underlying economic strength.
Among the individual sectors, the growth patterns were mixed but generally positive:
- Steel production continued its strong showing, contributing significantly to the overall growth figure
- Cement manufacturing maintained its robust performance, reflecting ongoing construction and infrastructure activities
- Other sectors showed varied growth rates, with some experiencing moderate expansion while others maintained steady production levels
Economic Implications and Future Outlook
This 3 percent growth in core sectors holds considerable significance for India's broader economic landscape. Since these eight industries account for nearly 40 percent of the weight in the Index of Industrial Production (IIP), their performance serves as a reliable leading indicator for overall industrial growth in the coming months.
The consistent performance of steel and cement, in particular, suggests that the government's infrastructure push and private sector investment in construction are yielding tangible results. This growth comes at a crucial time when the Indian economy is positioning itself for sustained expansion amid global economic uncertainties.
Industry experts view this data as positive reinforcement of India's economic resilience and its capacity to maintain growth momentum despite external challenges. The core sector's performance provides policymakers with encouraging signals as they navigate the complex task of balancing growth objectives with inflationary concerns.
