Core Sector Growth Dips to 2% in July: A Mixed Bag for Indian Industry

India’s core sector growth experienced a significant slowdown in July 2025, registering a mere 2% increase. This marks a considerable drop from the robust 6.3% growth witnessed in July of the previous year. The Index of Eight Core Industries, released by the Ministry of Commerce and Industry, paints a picture of mixed fortunes across different sectors.

Steel and Cement Show Resilience, Fossil Fuels Drag Down Growth

While the overall picture appears subdued, certain sectors offered glimmers of hope. Steel and cement production demonstrated resilience, registering positive growth during the month. However, this positive momentum was offset by a decline in fossil fuel production, which acted as a major drag on the overall index.

Fossil Fuel Slowdown Impacts Overall Performance

The slowdown in the fossil fuel sector, encompassing coal, crude oil, and natural gas, played a crucial role in dampening the overall core sector growth. This decline raises concerns about the energy security and overall economic stability of the nation. Further analysis is needed to understand the underlying causes and potential implications of this trend.