India’s core industries recorded a 1.8 per cent year-on-year growth in November, supported by strong output from cement, steel and coal, according to official data. The expansion points to steady momentum in construction- and infrastructure-linked sectors, even as energy-related industries remained under pressure. Cement led the performance during the month, while gains in steel and coal helped offset declines in crude oil, natural gas and electricity generation.
Data released by the government showed that cement output registered the highest growth among the eight core industries, rising sharply in November. Industry experts attribute this performance to sustained infrastructure spending, ongoing urban construction activity, and steady housing demand across several regions. On a cumulative basis, cement production has continued to show healthy growth in the current financial year, reinforcing its role as a key indicator of economic and urban development activity.Steel production also remained in positive territory, reflecting stable demand from infrastructure projects, manufacturing, and capital goods sectors. Analysts say public investment in transport networks and industrial corridors has supported steel consumption, helping the sector maintain momentum despite global headwinds. Coal output recorded a modest increase during the month, benefiting from higher demand from core industries, although cumulative production for the financial year so far remains lower, indicating supply-side and transition-related challenges.
In contrast, energy-linked sectors weighed on overall core sector performance. Crude oil production declined on a year-on-year basis, continuing a trend of lower domestic output. Natural gas production also fell, reflecting structural constraints and ageing fields. Petroleum refinery products, which carry the highest weight in the core industries index, slipped marginally during the month, limiting the pace of overall growth despite minor cumulative gains.Electricity generation registered a contraction in November, mirroring softer demand and changing consumption patterns. Experts note that improved efficiency, higher penetration of renewable energy, and milder seasonal demand have influenced power output trends. While this shift supports cleaner energy goals, it also affects short-term growth readings within the core sector index.
Economists describe the November data as a reflection of an uneven but evolving industrial landscape. Construction-linked materials such as cement and steel continue to benefit from urbanisation and infrastructure expansion, while fossil fuel-based segments face longer-term structural pressures. Going forward, sustained growth in the core sector is expected to depend on a balance between infrastructure-led demand, energy transition efforts, and productivity improvements across industries that underpin India’s urban and economic development.
