FX.co ★ India Infrastructure Output Slows

In September 2025, India's infrastructure output experienced a modest increase of 3% compared to the previous year. This marks a deceleration from the revised 6.5% growth witnessed in August, which was the most significant rate of expansion in over a year. The production of several key commodities saw a downturn; coal production decreased by 1.2%, a stark contrast to the 11.4% rise seen in August. Similarly, crude oil output fell by 1.3% after a previous 2.4% increase, natural gas declined by 3.8% from the earlier 2.2% growth, and refinery products dropped by 3.7%, down from a 3% increase. This downward trend is attributed to continued pressure from the United States on India to cease importing Russian crude energy commodities, impacting both domestic consumption and the export demand for refineries and processors. Consequently, electricity production also decelerated, increasing by 2.1% following a 4.1% rise in the previous month. On a more positive note, construction-related outputs showed resilience; cement production remained relatively steady with a 5.3% increase compared to 5.4% in August, while steel production saw an uptick to 14.1% from 13.6%.