FX.co ★ India’s Core Sector Growth Slows to 3% in September

India's eight core sectors experienced a growth of 3% year-on-year in September 2025, experiencing a notable deceleration from the 6.3% high seen in August, which marked a 15-month peak, according to data released by the Ministry of Commerce and Industry on Tuesday. These core sectors hold a significant 40.27% weightage in the Index of Industrial Production (IIP). The principal causes of this slowdown were decreased production in crude oil and coal. Crude oil output decreased by 1.3%, counteracting a 2.4% increase observed in the previous month. Similarly, coal production saw a 1.2% decline, following an impressive 11.4% growth in August. Other significant sectors also experienced downturns. Natural gas production fell by 3.8%, exceeding the 2.2% decline reported in August. In line with these downturns, refinery output decreased by 3.7%, moving away from a 3% growth achieved in the preceding month. On the brighter side, steel production saw continued strong growth, with a 14.1% increase in September, building on a 13.6% rise in August. Cement production grew by 5.3%, slightly trailing the 5.4% growth of the prior month. Nonetheless, the expansion in both electricity and fertilizer production also slowed down in September.