The composite index for India’s eight core industries rose by 2% in July, which was a little drop from the 2.2% rise reported in June 2025. The Office of the Economic Adviser presented data that showed that the success of these industries, which are a key sign of total industrial activity, was a story of two separate economic paths.
The chief economist at the Bank of Baroda, Madan Sabnavis, called the July statistics “dualistic.” He said that while “infra-based industries are doing very well,” the energy parts of the economy “registered low to negative growth rates.” The total growth for the first four months of the financial year (April to July) is currently 1.6%, which is a big decline from the 6.3% growth seen in the same period last year. This shows that private investment needs to step up a lot for the momentum to keep going.
Here is a look at how the eight main sectors did in July compared to the same month last year:
Steel saw the most gain, with production going up by a strong 12.8% in July, up from 9.7% in June. This sector has been doing well for the last 12 months, with increase every month. This is because of continuous government infrastructure projects and strong demand from the construction industry.
Cement: It too had good growth, with production rising by 11.7% in July, up from 8.2% in the month before. The expansion of this sector, like that of steel, is good news for the building and infrastructure sectors.
Fertilizer: After three months of contracting since April, it went up by a small amount of 2%.
Electricity: The sector’s output rose by 0.5% in July, which was a pleasant change from the 1.2% drop seen in June.
On the other side, the sectors relating to energy had a lot of problems:
Coal: Production fell by a whopping 12.3% in July, making it the second month in a row that it fell. In June, it fell by 6.8%. The strong monsoon rains that affected mining and transportation are mostly to blame for the reduction.
Crude oil production fell by 1.3%, marking the seventh month in a row that it has fallen.
Natural Gas: Production fell by 3.2%, which is less than the 2.8% drop in June.
Petroleum Refinery Products: In July, production fell by 1%, reversing the 3.4% rise experienced in the month before.
The fact that these fundamental industries are doing well and poorly at the same time shows that the economy is tough but not completely stagnant. The robust performance of major infrastructure sectors is a good indicator for growth, but the slow pace of energy production is a big problem that will need policy attention to keep the overall industrial momentum going.