India's core sector growth declines to 9-month low in May
What's the story
The output of India's eight core infrastructure sectors—which together make up about 40% of the country's industrial production—rose by just 0.7% year-on-year in May.
This is the slowest pace in nine months. In comparison, growth stood at 6.9% in May 2024. The figure for April 2025 was 1%, revised upward from 0.5%.
Only refinery products, steel and cement, reported a sequential rise in production during May.
Economic impact
What is Index of Eight core industries?
The Index of Eight Core Industries tracks the collective and individual performance of key sectors such as coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity.
These eight core industries contribute 40.27% to the items included in the Index of Industrial Production (IIP).
This highlights their significant role in India's overall industrial output and economic growth.
Sectoral slowdown
India's manufacturing sector also witnessed a decline
Along with the core sector, India's manufacturing sector also witnessed a decline.
A private survey conducted by S&P Global revealed that manufacturing activity fell to a three-month low in May.
The HSBC India Manufacturing Purchasing Managers's Index (PMI) dropped to 57.6 in May from April's 58.2 and March's 58.1, signaling a slowdown in new orders and output growth during this period.