The output of the core sector in India grows by 3.8%in March, the highest in two months | Mint

The production of eight core infrastructure sectors, which make up for two fifths of India’s industrial production, expanded by 3.8% annually in March the highest in the past two months. A year ago, in March 2024, the output of the core sector expanded by 6.3%. However, only three of the eight core industries – electricity, cement and steel – reported a monthly increase in production during March, according to the provisional data released by the Ministry of Trade and Industry on Monday. Also read: India’s economy strengthened in February, but external weakness remains a concern, shows that the coin is surely, the output of the core sector contributes 40.27% to the Index of Industrial Production (IIP). In February 2025, India’s industrial production delayed to a six -month low of 2.9%, powered by poor manufacturing and mining production, according to the estimates released earlier this month by the Ministry of Statistics and Program implementation. The previous low, recorded in August 2024, was zero. Sectors that expanded cement, steel and electricity output increased the output of the nuclear sector in March. Cement and steel production grew by 11.6% and 7.1% in March, higher than the 10.8% and 6.9% annual growth in the previous month. Electricity outputs reported an annual growth of 6.2% in March, from 3.6% in February, due to summer arrival in large parts of the country. Fertilizer production dropped to 8.8% in March, dropped from 10.2% in the previous month, powered by a low base effect and lower production due to higher shares last year. Also read: The state of India’s economy is not as clear as GDP data may indicate that the output of the refinery products has also dropped to 0.2% from 0.8%, while coal production dropped 1.6% from 1.7% during the above period. Meanwhile, the production of natural gas and crude oil contracted with 12.7% and 1.9% during March, compared to the contraction of 6% and 5.2% in February. Crude oil production has dropped due to low international prices, while the production of natural gas dropped as higher imports replace domestic production. Mix Bag The growth in the core sector in March 2025 was mixed, with oil -related products underperforming, while construction -related sectors are still growing, said Bank of Baroda chief economist Madan Sabnavis. “Although most of the increase in (cement and steel) production can be attributed to higher government spending at the end of the year, the fact that the private sector investment announcements increased in the second quarter of the fourth quarter, also this growth in demand for steel,” he said. “For March, the IIP growth can be expected between 4-4.5%,” he added. Also read: Rural India’s reality test: Consumers become cautious as aspiration meets inflation, first published: 21 Apr 2025, 06:20 IST