India Infrastructure Output Stalls

The infrastructure output in India rose by 3.7% from the previous year in December of 2025, accelerating from the upwardly revised 2.1% increase in the previous month to mark the sharpest pace of growth since the 15-month high from August. The rebound for the infrastructure aggregate, which makes up nearly 40% of India's total industrial production, indicated that the cutback in capacity from the aggressive hike in US tariffs was short-lived, aligned with other indicators pointing to some resilience for goods producers. Growth was sharp for construction inputs through steel (6.9& vs 16.7%) and cement (13.5% vs 14.6%) and selected energy goods in electricity (5.3% vs -1.5%), and coal (3.6% vs 2.1%). These offset continued pressure in crude oil (-5.6% vs -3.2%) and refinery products (-1% vs -0.9%), still adapting to lower prices in global benchmarks and supply disruptions from Russia.

The infrastructure output in India rose by 1.8% from the previous year in November of 2025, gaining traction following the revised 0.1% decrease in the previous month, which was the first drop in over one year. The rebound for the infrastructure aggregate, which makes up nearly 40% of India's total industrial production, indicated that the cutback in capacity from the aggressive hike in US tariffs was short-lived, aligned with other indicators pointing to some resilience for goods producers. Growth was sharp for cement (14.5% vs 5.2% in October) and steel (6.1% vs 5.9%) for a robust month in construction inputs, while a rebound in coal (2.1% vs -8.5%) was also observed. In turn, output fell for other energy with crude oil (-3.2% vs -1.2%), natural gas (-2.5% vs -5%) extending their contraction streaks.

The infrastructure output in India was unchanged from the previous year in October of 2025, holding the upwardly revised 3.3% increase in the previous month. It was the first period without expansion in 14 months, reflecting some pressure from the aggressive tariffs on India passed by the US which drove multiple businesses to announce cuts in capacity. Output fell sharply for coal (-8.5% vs -1.2% in September), crude oil (-1.2% vs -1.3%), natural gas (-5% vs -3.8%), and electricity (-7.6% vs 3.1%) to underscore the sensitivity of macroeconomic headwinds on energy markets. In the meantime, output continued to grow for fertilizers (7.4% vs 1.6%), steel (6.7% vs 14.4%), and cement (5.3% vs 5%) amid some resilience of non-energy sectors.