FX.co ★ India Infrastructure Output Picks Up

In December 2025, India's infrastructure output grew by 3.7% compared to the previous year. This marks an acceleration from the revised 2.1% increase observed in the prior month, representing the fastest growth rate since the 15-month peak recorded in August. The increase in infrastructure output, which constitutes nearly 40% of India's total industrial production, suggests that the decline in capacity due to the sharp increase in US tariffs was temporary. This is consistent with other signs of resilience among goods producers. Significant growth was observed in construction materials, such as steel, which rose by 6.9%, and cement, which increased by 13.5%. In the energy sector, electricity grew by 5.3%, and coal by 3.6%. These gains offset continued challenges in crude oil, which decreased by 5.6%, and refinery products, which fell by 1%. These areas are still adjusting to lower global benchmark prices and supply disruptions from Russia.