Current Affairs - Economy - Discussion

India’s core sector growth slowed significantly to 0.7% in May 2025, representing the weakest expansion in the last nine months. This decline was driven by contractions in critical sectors such as crude oil, natural gas, fertilisers, and electricity. The Index of Eight Core Industries (ICI), which tracks these sectors and contributes about 40% to the broader Index of Industrial Production (IIP), serves as a vital gauge of economic momentum. The sharp deceleration follows a prior month of sluggish performance, highlighting underlying stress in industrial output. This downtrend could impact overall GDP growth and signal a need for policy attention.