India Infrastructure Output Rises for 3rd Month

The infrastructure output in India expanded by 4.0% from the previous year in January of 2026, slowing from the upwardly revised, 11-month high of 4.7% to mark a third straight period of increase. Growth in infrastructure continued to be carried by raw materials used for construction, with higher growth rates holding for steel (9.9% vs 10.1%) and cement (10.7% vs 13.7%). In the meantime, expansions were also slower for electricity 3.8% vs 6.3%), fertilizers (3.7% vs 4.1%), and coal (3.1% vs 3.6%). On the other hand, production fell for natural gas (-5% vs -4.4%), crude oil (-5.8% vs -5.6%), and stalled for refined products (vs -1%), maintaining the weakness for the sector as sourcing raw materials from Russia became scrutinized following sanctions from the US.

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.