Cement and Steel Output Drive India’s Core Sector Momentum in November

India’s core infrastructure sector showed signs of resilience in November, led by a sharp rise in cement production and steady growth in steel output, underlining sustained activity in construction and manufacturing. While the overall core sector growth remained modest, the performance of these two segments offered comfort to policymakers and industry watchers tracking investment-led demand.

Cement emerged as the clear outperformer during the month, recording a year on year growth of 14.5 per cent. The strong showing reflects continued traction in housing, infrastructure projects, and public capital expenditure, particularly in roads, urban development, and industrial construction. Analysts note that cement demand has remained firm across several regions, supported by ongoing government spending and gradual revival in private construction activity.

Steel production also maintained a healthy trajectory. Output rose by about 6.1 per cent in November compared with the same month last year, while cumulative steel production for the April to November period expanded by nearly 9.7 per cent. The steady growth in steel points to stable demand from sectors such as infrastructure, engineering, automobiles, and real estate, even as global uncertainties persist.

Data released by the Ministry of Commerce and Industry highlight that construction-linked industries continue to act as a buffer for the broader industrial economy. Cement and steel together carry significant weight within the Index of Eight Core Industries, and their performance often provides an early signal of trends likely to reflect in the Index of Industrial Production.

Industry experts say the momentum in cement and steel is encouraging, especially at a time when some other core sectors face pressure. Rising input costs, volatile global markets, and cautious private investment have posed challenges, but infrastructure-focused spending has helped sustain demand for key building materials.

Looking ahead, the outlook for cement and steel remains cautiously optimistic. Continued public capex, progress on large infrastructure projects, and improving urban housing demand are expected to support volumes in the coming months. However, experts caution that sustained growth will depend on stable commodity prices, timely project execution, and a broader pickup in private sector investment.

Overall, November’s data reaffirm the role of cement and steel as critical pillars of India’s industrial and infrastructure growth story.