Growth Stalls: Infrastructure Sectors Hit Two-Month Low
The growth of eight key infrastructure sectors dropped to 2% in July 2025, the lowest in two months. A decline in coal, crude oil, natural gas, and refinery products affected this downturn. In contrast, steel and cement witnessed a significant rise in output during the same period.
- Country:
- India
Growth in eight key infrastructure sectors of India has seen a significant drop, reaching a two-month low of 2% in July 2025. The dip is largely due to reduced output in coal, crude oil, natural gas, and refinery products.
According to official data, the output for these sectors had grown by 6.3% in July last year. Recent figures indicate that steel and cement output increased sharply by 12.8% and 11.7% respectively. However, this growth was not enough to offset the declines in other sectors.
Aditi Nayar, Chief Economist at ICRA, noted the deepening year-on-year contraction in coal output, which widened to 12.3% in July 2025 from 6.8% in June 2024. Nayar expects the index of industrial production growth to be between 1.5% and 2.5% for July 2025.
(With inputs from agencies.)
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