India’s Infrastructure Output Expands 3.7% in December, But April–December Growth Slows to 2.6%

India’s infrastructure sector showed signs of recovery in December 2025, with output across the eight core industries expanding 3.7% year-on-year, according to official data from the Ministry of Commerce and Industry. This marks the strongest growth in four months, driven by robust performance in cement (up 13.5%) and steel (up 6.9%), alongside gains in electricity, coal, and fertilizers.

However, energy-linked sectors continued to weigh on overall growth. Crude oil production fell 5.6%, natural gas declined 4.4%, and refinery output slipped 1%. Despite these headwinds, the December rebound lifted cumulative growth for April–December FY26 to 2.6%, compared with 4.5% in the same period last year.

Analysts suggest that while industrial demand remains resilient, persistent weakness in energy output could pose challenges for sustaining momentum. The core sector accounts for nearly 40% of India’s Index of Industrial Production (IIP), making its performance critical for broader economic growth.

Key Highlights

• December Growth: 3.7% YoY, up from 2.1% in November
• Strong Sectors: Cement (+13.5%), Steel (+6.9%), Electricity (+5.3%), Coal (+3.6%), Fertilizers (+4.1%)
• Weak Sectors: Crude oil (-5.6%), Natural gas (-4.4%), Refinery products (-1%)
• April–December FY26: 2.6% cumulative growth vs. 4.5% last year
• Economic Impact: Core sector contributes ~40% to IIP, influencing GDP trajectory

Sources: CNBC-TV18, Economic Times, ZeeBiz, News9Live, Devdiscourse, NewsBytes.