Archive · 27 Oct 2025
India's Core Sector Slowdown: Implications for Growth
India's important industries, like making electricity and steel, slowed down in September.
These industries are like the engine of the economy.
When they slow down, it can affect how much the country makes overall.
Steel did well, but not enough to offset the problems.
Experts believe this slowdown means the total growth of the economy may be slower.
This can affect jobs, how much stuff is made, and how much people invest in the country.
Slowdown in core sectors observed in September.
Eight core sectors analyzed: coal, crude oil, natural gas, etc.
Half of the core sectors experienced output decline.
Steel sector showed strong growth, defying the trend.
Economists anticipate a slowdown in overall industrial growth.
- Who
- Indian economy, core sectors (coal, crude oil, etc.), economists
- What
- Slowdown in India's core sectors in September impacts industrial and GDP growth
- When
- September, FY26 (analysis of past and future trends)
- Where
- India
- Why
- Weaker energy production, refining activity and other factors affecting industrial output.
Economy
Construction/Infrastructure
Overall Growth
Economy
Slowdown in core sectors could lead to reduced input supply and economic slowdown.
Construction/Infrastructure
Strong steel performance driven by construction and infrastructure may partially offset slowdown.
- Core Sectors
- Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, Electricity
- Weight in IIP
- 40%
- Sectors Shrinking (Sept.)
- Coal, Crude Oil, Natural Gas, Refinery Products
- Sectors with Gains (Sept.)
- Fertilizers, Cement, Electricity
- Steel Growth
- Strong YoY
- Projected IIP Growth (Sept.)
- Approx. 2% (ICRA Ltd estimate)
- August IIP Growth
- 4%