India’s infrastructure output climbed by 1.7 per cent year-on-year in June 2025, marking the fastest growth in three months and signaling renewed momentum across key sectors, according to official government data. This marks an acceleration from a revised 1.2 per cent in May and a downturn from March’s 4.5 per cent, but June’s increase delivers the strongest lift since April.
At the heart of this uptick are robust performances in steel and cement, which saw production volumes surge 9.3 per cent and 9.2 per cent respectively in June. These numbers reflect strong demand driven by ongoing public and private investment in infrastructure, ranging from road and rail development to urban transit and energy projects. Refinery products also posted solid results, rising 3.4 per cent year-on-year, further contributing to the broader infrastructure rebound.
In contrast, several energy-related sectors experienced contraction. Coal production dropped by 6.8 per cent, while electricity generation fell 2.8 per cent, though both improved modestly from the previous month. Crude oil and natural gas output also declined, albeit at slightly slower rates compared to May. Fertilizer production decreased by 1.2 per cent, reversing a sharper 5.9 per cent drop seen earlier.
Despite pockets of weakness in energy and fertilizer sectors, the resurgence of steel and cement remains key to sustaining India’s infrastructure push. Analysts suggest that this growth aligns with government-led programs such as PM‑Gati Shakti, urban metro expansion, and highway construction, reinforcing the pivotal role of steel in enabling large-scale projects.
While energy sectors remain under pressure, the strong rebound in steel and cement output bodes well for the near-term trajectory of infrastructure development, reinforcing India’s industrial growth narrative as the country presses ahead with ambitious capital expenditure plans.
