FX.co ★ Indian Infrastructure Output Picks Up

In June 2025, India's infrastructure output increased by 1.7% compared to the same period the previous year, accelerating from a revised 1.2% growth in May. This continued the upward trend following a slowdown to an eight-month low of 1% in April. The growth was primarily driven by increased production in steel (9.2% compared to 7.4% in May) and cement (9.2% compared to 9.7%), owing to heightened demand for construction materials in Asia. This demand surge was influenced by Chinese policymakers advocating for a nationwide capacity reduction, thereby enhancing the competitiveness of Indian firms. Additionally, the output of refined products saw faster growth (3.4% compared to 1.1%). Conversely, there was a decline in the production of electricity (-2.8% compared to -4.7%), coal (-6.8% compared to 2.8%), and crude oil (-1.2% compared to -1.8%).