Eight Core Industries' Growth At Five-Month Low

The index of eight core industries grew 2.9% in February, a deceleration compared to a growth of 4.6% in January, according to data released by the Ministry of Commerce & Industry on Friday.

The combined index of eight core industries grew for the fifth consecutive month, with six of eight core sectors witnessing expansions in February. The production of cement, fertilisers, steel, electricity, coal and petroleum refinery products recorded positive growth.

"The core sector growth moderated to a five-month low of 2.9% in February 2025 from 5.1% in January 2025, although this was partly on account of the leap year-related high base," Aditi Nayar, chief economist at ICRA Ratings, said.

Here is a breakdown of the sectors in February, as compared to the last six months:

"As many as five of the eight indicators, including coal, crude oil, natural gas, refinery and cement output, recorded a weaker yearly performance in February 2025 as compared to the previous month," Nayar said.

Cement was the sector with the highest growth at 11%, and natural gas production the biggest laggard with a decline of 6% over its January levels.

Fertiliser production also saw an increase of 10% in February, while crude oil production bucked the script, declining 5% in the month. Coal production grew 2%, falling from its 5% production level in January. Petroleum refinery products saw a marginal increase of 1%, as compared to 8% in January.

Electricity generation was up 3% this month, and steel production also grew 6%, as compared to 1% and 4%, respectively, in the previous month.

"Given these trends, we expect the Index of Industrial Production growth to ease to 3.0-3.5% in Feb. 2025 from 5% in Jan. 2025," Nayyar added.

During the April to February period, steel production saw the highest acceleration, noting a 6.5% increase. Coal production came in second at 5.6% growth.

In the same period, crude oil production saw the most decline with a 2.2% fall.