Growth in Core Sector Industries Slows: An Analysis of the Index of Eight Core Industries
UPSC Relevance
Prelims: Indian Economy and Social Development (Economic Growth & Development, Industry, Core Industries, Index of Industrial Production - IIP).
Key Highlights from the News
The growth rate of India's eight core industries decreased to 2% in July 2025. In the same month last year, it was 6.3%.
These figures are from the Index of Eight Core Industries released by the Ministry of Commerce and Industry.
The main reason for the decline in the growth rate is the contraction in fossil fuel sectors such as Coal, Natural Gas, and Crude Oil.
The coal sector recorded a significant decline of 12.3%, which is its worst performance in the last five years.
However, sectors like Steel and Cement achieved double-digit growth, indicating construction activity in the economy.
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