Index of Eight Core Industries for June 2025 (Base Year: 2011-12 = 100)
The Index of Eight Core Industries (ICI) showed a provisional increase of 1.7% in June 2025 compared to the same month in 2024. This growth was primarily driven by positive production trends in steel, cement, and refinery products. However, the overall performance of the core industries revealed mixed results, with significant declines in coal, crude oil, and natural gas production during the same period.
Overview of the Index of Eight Core Industries
The Index of Eight Core Industries serves as a crucial indicator of the performance of key sectors in the economy, including coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity. These industries collectively account for 40.27% of the total weight in the Index of Industrial Production (IIP). The ICI’s performance is essential for understanding the broader industrial landscape, as it reflects both individual and combined production metrics across these sectors. The final growth rate for May 2025 was recorded at 1.2%, while the cumulative growth rate for the April to June 2025-26 period stands at 1.3% compared to the same timeframe last year.
Sector-Specific Performance
In June 2025, the production of steel surged by 9.3% compared to June 2024, contributing positively to the overall ICI growth. Cement production also experienced a notable increase of 9.2% during the same period. On the other hand, coal production faced a significant decline of 6.8%, with a cumulative decrease of 0.3% from April to June 2025-26 compared to the previous year. Similarly, crude oil and natural gas production saw declines of 1.2% and 2.8%, respectively, indicating challenges in these sectors.
The performance of fertilizers was also disappointing, with a 1.2% decrease in production in June 2025. Conversely, petroleum refinery products showed resilience, with a 3.4% increase in production, maintaining a steady cumulative index during the April to June period. Electricity generation, however, fell by 2.8% in June 2025, reflecting ongoing issues in the energy sector.
Implications for the Economy
The mixed performance of the core industries highlights the complexities within the industrial sector. While sectors like steel and cement demonstrate robust growth, others such as coal and crude oil are struggling. This divergence in performance may have implications for economic policy and investment strategies moving forward. The data suggests that while some industries are thriving, others may require targeted interventions to address the challenges they face.
The upcoming release of the ICI for July 2025 is anticipated on August 20, 2025, which will provide further insights into the ongoing trends and developments within these critical sectors. Stakeholders will be keenly observing these figures to gauge the overall health of the industrial landscape and its potential impact on the broader economy.
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