India’s eight core industries recorded a 2.9% growth in February 2025, a sharp decline from the 5.1% growth seen in January, according to data released by the Ministry of Commerce and Industry. The slowdown was driven by a contraction in crude oil and natural gas production, as well as a steep fall in refinery output growth.

Crude oil output contracted 5.2%, worsening from the 1.1% decline in January, while natural gas production dropped 6% versus a 1.5% fall a month earlier. Refinery production growth also slowed sharply to 0.8% from 8.3%.

Coal production growth eased to 1.7% from 4.6%, but electricity generation improved slightly to 2.8% from 2.4%. Steel output expanded 5.6%, up from 4.7%.

Meanwhile, fertiliser production jumped 10.2%, sharply higher than January’s 3% rise, and cement output grew 10.5%, though slower than the 14.6% pace seen earlier.

For the April-February FY25 period, core sector growth stood at 6.4%, compared to 7.8% in the same period last fiscal. The slowdown in crude oil and gas output is attributed to declining production from ageing fields and maintenance-related shutdowns at key refineries.

Also read: India’s eight core industries grows 4.6% year-on-year in January

On the other hand, fertiliser production saw a strong boost due to pre-monsoon demand and increased government subsidies.

The eight core sectors—coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity—account for 40.3% of the Index of Industrial Production (IIP). The latest data signals a mixed industrial performance, with some sectors seeing robust expansion while others struggle with declining output.