Core sectors develop at nine-month low of 0.7% in May, dragged by oil, fuel, fertilisers & electrical energy

The Index of Eight Core Industries (ICI) for May 2025, launched on Friday (June 20, 2025) by the Ministry of Commerce and Industry, was final decrease in August 2024, when it had contracted 1.4%. The development price in May additionally marks two consecutive months of slowing development within the index.

The eight core industries make up about 40% of the general Index of Industrial Production, which is a composite index of the economic efficiency of the economic system.

Within the ICI, the crude oil sector contracted 1.8% in May 2025, the fifth consecutive month of contraction within the sector on account of falling international crude oil costs. In reference to this, the refinery merchandise sector grew 1.1% in May, though this was quicker than the contraction of 4.5% it noticed in April. 

The pure fuel sector contracted by 3.6% in May, the eleventh consecutive month of contraction within the sector.

The contraction within the pure fuel sector is linked to the efficiency of the fertiliser sector, which is the largest client of pure fuel. The pure fuel sector contracted 5.9% in May, compounding a contraction of 4.2% in April.

The electrical energy sector contracted 5.8% in May, a primary cause behind the coal sector’s subdued development that month of two.8%, which is down from the three.5% development seen in April. 

Notably, the metal sector noticed development accelerating to six.7% in May from 4.4% in April. This development was additionally on a excessive base of 8.9% in May 2024. 

The cement sector, too, witnessed sturdy development of 9.2% in May 2025, though this was on a low base because the sector had contracted 0.6% in May of final yr.