Business

India’s Infrastructure Output Rises 3.8% In March 2025 On Strong Steel & Cement Growth

India’s infrastructure output rose by 3.8% year-on-year in March 2025, according to data from the Ministry of Commerce & Industry.

The increase, driven by strong performances in cement and steel, marks a steady rise from February’s revised figure of 3.4%, up from the initial estimate of 2.9%.

This data is based on the Index of Eight Core Industries (ICI), which accounts for 40% of the country’s industrial production.

The index tracks the combined and individual output of eight key sectors: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilisers, Steel, Cement, and Electricity.

Strong Output In Cement & Steel

Among the eight sectors, cement production rose 11.6% in March compared to a revised 10.8% increase in February.

Steel output increased 7.1%, building on February’s revised growth of 6.9%.

These two sectors were the primary drivers of the March performance, reflecting sustained demand and continued infrastructure development.

Mixed Performance Across Other Core Sectors

Coal production, which holds a weightage of 10.33% in the index, saw a 1.6% rise in March compared to a 1.7% gain the previous month.

Electricity generation rose by 6.2%, a marked improvement over the revised 3.6% increase in February.

Refinery products saw modest growth of 0.2%, slowing from 0.8% in February.

Fertiliser output grew by 8.8%, although slightly down from the 10.2% increase in February.

Decline In Crude Oil & Natural Gas

On the downside, crude oil production dropped 1.9% year-on-year in March, which was an improvement over the 5.2% decline recorded in February.

Natural gas production, however, continued to struggle, falling 12.7% in March compared to a 6% decline the month before.

For the full fiscal year 2024-25, India’s infrastructure output grew by 4.4%, reflecting a consistent recovery in the core sectors despite global uncertainties and sector-specific challenges.

The steady rise in output across critical sectors like steel, cement, and electricity points to strong momentum in construction and infrastructure development.

However, subdued performance in oil and gas continues to be a concern.

Policymakers and industry stakeholders will be looking at ways to address these gaps while capitalising on sectors showing robust growth.

With infrastructure playing a pivotal role in India’s industrial output, sustained improvements in these core areas are crucial to supporting the government’s broader economic goals.

Also Read: Indian Scooter Industry Records Best-Ever Sales In FY2025; Driven By Strong Demand & EV Growth

Bharat Express English

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