In February 2025, the Index of Eight Core Industries (ICI) increased by 2.9 percent compared to the same month in 2024. This growth reflects the performance of key sectors that form the core of India’s industrial production. The ICI tracks the output of eight industries: Coal, Crude Oil, Natural Gas, Petroleum Refinery Products, Fertilizers, Steel, Cement, and Electricity. These sectors together account for over 40 percent of the weight in the broader Index of Industrial Production (IIP).
The final growth figure for November 2024 has been confirmed at 5.8 percent. Between April 2024 and February 2025, the combined index grew by 4.4 percent over the same period in the previous year.
In February 2025, six out of the eight industries reported positive growth compared to February 2024. However, production of Crude Oil and Natural Gas declined during the same period. The performance of each sector is explained below.
Coal production increased by 1.7 percent in February 2025 compared to February 2024. However, when compared to January 2025, coal output fell by 6.2 percent. Over the eleven-month period from April to February, coal production rose by 5.6 percent compared to the same period last year.
Crude oil production declined by 5.2 percent compared to February 2024. It also fell slightly by 0.4 percent from January 2025. The cumulative output from April to February showed a 2.2 percent drop from the same months in the previous financial year.
Natural gas production decreased by 6.0 percent over the year and by 2.7 percent from the previous month. Its total production from April to February was slightly lower by 0.1 percent than the same period in the earlier year. Both crude oil and natural gas continue to show weak performance.
Petroleum refinery products recorded a year-on-year increase of 0.8 percent in February 2025. Compared to January 2025, output rose by 1.5 percent. Cumulatively, refinery production between April and February grew by 3.1 percent over the previous year.
Fertilizer production rose sharply by 10.2 percent in February 2025 compared to the same month last year. On a month-on-month basis, output increased by 3.5 percent. The total production from April to February was 2.4 percent higher than in the previous year.
Steel output increased by 5.6 percent in February 2025 compared to February 2024. Production also grew by 3.0 percent from January 2025. In the eleven-month period, steel production rose by 6.5 percent. Steel has been one of the stronger performers this year, likely due to increased demand from the construction and manufacturing sectors.
Cement production showed the highest year-on-year increase among all eight industries. It rose by 10.5 percent in February 2025 compared to the same month last year. Output also increased by 4.1 percent from January 2025. Cumulatively, cement production grew by 5.1 percent from April to February over the previous year. This strong growth suggests healthy activity in infrastructure and real estate projects.
Electricity generation increased by 2.8 percent over the year. However, compared to January 2025, it declined slightly by 0.5 percent. From April to February, electricity output was 4.9 percent higher than the same period last year.
In summary, most core industries showed steady or strong growth in February 2025. Cement, Fertilizers, and Steel were the standout performers with high growth compared to both the previous month and the previous year. Petroleum products, coal, and electricity also contributed positively. However, the oil and gas sectors continued to report declines. Over the financial year so far, the index has grown at a moderate pace, indicating a stable but mixed trend in India’s core industrial sectors.
Cover photo: www.freepik.com
