Thursday, October 23, 2025

Infrastructure Sector Growth Slows Despite Steel Momentum

India’s key infrastructure sectors, including steel, cement, and power, recorded a moderate growth of approximately three percent in September, reflecting a slowdown from the previous month’s 6.5 percent expansion. The moderation highlights uneven performance across core industries, with certain segments facing challenges in output and supply chain efficiency.

Despite the overall slowdown, the steel sector continued to demonstrate resilience, supported by ongoing construction and infrastructure projects. The steady demand for steel in roads, railways, bridges, and urban development projects has helped maintain production levels, underscoring its role as a critical enabler of industrial growth and infrastructure expansion. Analysts observe that while other sectors such as power and cement experienced constrained growth, steel remained a reliable driver of output in the broader industrial ecosystem.

The moderate expansion in core infrastructure output points to factors such as delays in project execution, logistical bottlenecks, and fluctuations in raw material availability. These challenges have tempered growth across several sectors, affecting overall industrial momentum. However, the performance of steel suggests that targeted government investments in public works and urban infrastructure continue to provide support and stability to the sector.

Industry experts note that continued focus on policy support, efficient project management, and streamlined supply chains will be critical in sustaining growth across infrastructure sectors. The steel industry’s ability to maintain robust production levels amid moderation in other areas reflects its strategic importance in the construction and industrial landscape.

Looking ahead, the performance of the steel sector is expected to remain closely linked to government-led infrastructure initiatives and private sector construction activity. Sustained investment and proactive measures to address challenges in related sectors can help stabilise overall industrial output, ensuring that infrastructure development progresses in line with national economic objectives and continues to contribute to employment and industrial growth.

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