Core sector growth slows to 4% in January

While seven of the eight sectors recorded slower growth in January than in December, energy-related segments were a bigger drag

Growth in eight key infrastructure sectors, as measured by the combined Index of Eight Core Industries, eased to 4% in January from 4.7% in December 2025, according to data released by the Ministry of Commerce and Industry on Friday. On a cumulative basis, growth during April to January in the current financial year stood at 2.8%, according to the release.

Core sector growth slows to 4% in January

The eight sectors covered by the index are coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity. Together, they account for 40.27% of the weight of items included in the broader Index of Industrial Production (IIP).

While seven of the eight sectors recorded slower growth in January than in December, energy-related segments were a bigger drag. Crude oil production contracted 5.8% year on year in January, up from a 5.6% contraction in December. Natural gas output fell 5.0%, also more than the 4.4% contraction in December. Output of refinery products, which carry the highest weight of 28.04% in the index, was the same as in January 2025. To be sure, this was an improvement compared to the 1% contraction seen in December.

In contrast, construction and manufacturing-linked segments stayed strong despite some slowdown in growth. Cement output rose 10.7% year-on-year in January compared to 13.7% in December. Steel production increased 9.9% compared to 10.1% in December.

Fertiliser output grew 3.7%, and electricity generation rose 3.8%, helping offset weakness in oil and gas. Coal production also rose 3.1% in January. The growth rate of fertilizer, electricity, and coal sectors was 4.1%, 6.3%, and 3.6% in December.

To be sure, the January data is provisional and subject to revision in subsequent releases, and should therefore be read with caution.