India’s infrastructure sector showed renewed momentum in June 2025, with core sector output increasing by 1.7 per cent year-on-year, marking the fastest pace in three months. This uptick was largely driven by robust growth in steel and cement production-both critical indicators of construction and industrial activity.
According to data, steel production surged by 9.3 per cent in June, while cement output followed closely with a 9.2 per cent increase. These two sectors, which together account for a significant share of India’s infrastructure landscape, reflect strong demand across housing, roads, bridges, and industrial projects.
The core infrastructure index tracks eight key industries: coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity. Together, these sectors represent about 40 per cent of the Index of Industrial Production (IIP), making them a vital indicator of the economy’s health.
The sharp rise in steel output stands out as a key signal of India’s ongoing infrastructure push. With the government prioritising public works, urban housing, transportation corridors, and green energy installations, the construction sector has remained a major consumer of steel. Industry observers suggest this surge also reflects the ramp-up in capital expenditure and public-private projects across the country.
However, some analysts point out that while the headline growth is encouraging, the overall pace remains modest due to base effects and uneven performance in other core sectors like crude oil and refinery products.
Still, with steel production acting as a leading indicator of infrastructure demand, the June data reaffirms the sector’s central role in India’s growth story. As large-scale projects such as highways, metro networks, industrial corridors, and data centres progress, the outlook for steel demand in infrastructure remains strong.
