November 20, 2025: India’s infrastructure output remained flat in October, with government data showing zero year-on-year growth as declines in coal, crude oil, and electricity production cancelled out gains in sectors such as steel, cement, fertilisers, and refinery products. The infrastructure index—which tracks eight core industries and constitutes 40% of the country’s overall industrial production—had risen by a revised 3.3% in September, highlighting a sharp slowdown in October.
The energy sector saw the steepest declines. Crude oil production dropped 1.2% year-on-year in October, compared to a 1.3% fall in September. Natural gas output contracted 5%, following a 3.8% decline in the previous month. Coal production witnessed a significant 8.5% fall, sharply higher than the 1.2% drop recorded in September. Electricity generation also declined substantially by 7.6%, reversing the revised 3.1% growth seen in September.
In contrast, industrial materials displayed stronger performance. Cement output increased 5.3% year-on-year in October, marginally higher than September’s revised 5% rise. The steel sector grew 6.7%, though this was notably slower than the strong 14.4% expansion reported in September. Fertiliser production posted a robust 7.4% growth, improving from a 1.6% rise the previous month. Refinery products output climbed 4.6% in October, recovering from a decline of 3.7% in September.
Despite mixed sectoral performance, cumulative infrastructure output for April–October rose 2.5% year-on-year, compared with a revised 4.3% growth during the same period last year. The October stagnation underscores persistent supply challenges in India’s energy and mining sectors, which continue to counterbalance improvements in construction-led industries.
As policymakers monitor industrial indicators closely, trends in core sector performance will play a crucial role in shaping expectations for the country’s broader economic trajectory in the coming months.
Source: Reuters
