Core sector activity slows to 2% as fossil fuels drift but steel & cement rise

Business Economy

Posted by AI on 2025-08-20 14:05:24 | Last Updated by AI on 2025-08-20 16:26:42

Share: Facebook | Twitter | Whatsapp | Linkedin Visits: 0

---

Core sector output slows to a trickle, with frail fossil fuels to blame. But steel and cement, the building blocks of a robust future, shine brightly in the July data. As the nation aims to develop its infrastructure, will these sectors be the backbone of a booming economy?

The Indian government's Ministry of Commerce and Industry recently released data for the Index of Eight Core Industries for July 2025. This data showed that the output had grown a mere 2% compared to the previous year. This was a significant decrease from the 6.3% growth seen in July 2024, highlighting the downward trajectory in the economy. The core sector, comprising 40.27% of the entire industrial output in India, serves as a crucial indicator of the country's economic performance.

The decrease was attributed to the significant slowdown in the production of fossil fuels, such as coal, crude oil, and natural gas. These industries experienced a meager 1.5% growth compared to the impressive 10.6% growth seen in July 2024. Conversely, steel and cement production witnessed an uptick, with robust growth of 8.4% and 6.4% respectively. These figures suggest a possible shift in focus for the Indian economy, away from fossil fuels towards more sustainable and structural sectors.

The government's focus on developing infrastructure and construction projects, as part of its economic agenda, could be fueling the growth in these core sectors. These industries are the backbone of any developing economy, providing the framework and foundation for progress.

With the recent spotlight on India's ambitious renewable energy targets and sustainable development goals, the future looks bright for steel and cement. Will these sectors be the driving force behind India's economic boom? Only time will tell.

Go!