Infrastructure Growth Slows to 2% in July

New Delhi, Aug 20 (PTI) Eight infrastructure sectors' growth fell to a two-month low of 2 per cent in July 2025 due to a dip in the production of coal, crude oil, natural gas, and refinery products.

According to official data released on Wednesday, the output of these sectors had risen by 6.3 per cent in July last year. The production growth was 2.2 per cent in the previous month of June.

The growth was dragged by five key sectors of coal, crude oil, natural gas, and refinery products, which recorded a decline in output in July.

The production growth of fertiliser and electricity moderated to 2 per cent and 0.5 per cent in July from 5.3 per cent and 7.9 per cent in July 2024, respectively.


However, steel and cement output jumped by 12.8 per cent and 11.7 per cent, respectively, during the month under review.

In April-July of this fiscal year, the eight infrastructure sectors expanded by 1.6 per cent, compared to 6.3 per cent during the same period last year.

Commenting on the data, Aditi Nayar, Chief Economist, ICRA, said the year-on-year contraction in coal output widened sharply to 12.3 per cent in July 2025 from 6.8 per cent in June 2024, the steepest in over five years, weighing on the growth in the core index.

"Overall, given the trends in core output, ICRA expects the IIP (index of industrial production) growth to print at 1.5-2.5 per cent in July 2025," she said.