28th, Jul, 2025

Steel and Cement Industry Show Strong Growth in Q1 FY2025-26

The Government of India has released data about the performance of the Eight Core Industries for the April to June 2025 quarter. Among these, Steel and Cement stood out with strong growth compared to the same time last year April to June 2024 quarter.

Let’s understand how these two important sectors performed and what it means for India’s economy.

Quarter-on-Quarter Growth April to June Q1 FY26 vs Q1 FY25

• Steel production increased by 7% in April–June 2025.

• Cement production went up by 8.4% in the same period.

• This shows that construction and infrastructure activities in the country are rising steadily.

Growth in June 2025 FY26 vs June 2024 FY25

Both sectors showed even higher growth in June 2025 alone:

• Steel production rise by 9.3%

• Cement production rise by 9.2%

This indicates strong demand, especially in the construction, housing, and infrastructure sectors.

What Does This Growth in Steel and Cement Really Mean for India?

The strong growth in steel and cement production during April–June 2025 (Q1 FY 2025–26) is more than just a number—it reflects positive momentum in India’s infrastructure, real estate, and construction sectors. These two industries are the backbone of physical development, and their performance directly influences many other parts of the economy.

Let’s break down what this growth signifies:

1. Increased Construction Activity

When cement and steel production goes up, it usually means more buildings, bridges, roads, highways, and homes are being built. This can include:

• Government infrastructure projects like highways and metro lines

• Private housing and real estate development

• Industrial construction like warehouses and factories

In short, the growth shows that India is actively building and expanding.

2. Stronger Economic Recovery

Sectors like steel and cement are closely tied to overall economic health. When these industries grow:

• They create more jobs (in factories, transport, construction sites, etc.)

• They increase demand for raw materials (like limestone, iron ore, and coal)

• They generate income for businesses and workers alike

This means that the growth in these sectors helps push the entire economy forward, especially after slowdowns or uncertain periods.

3. Boost to Employment and Allied Industries

Cement and steel growth helps not just the core industries but also:

• Transport and logistics (movement of materials)

• Construction equipment sales

• Labour-intensive sectors (like building contractors, workers, engineers)

This growth provides job opportunities across skilled, semi-skilled, and unskilled categories.

4. Positive Signal to Investors

When the core sectors like steel and cement grow consistently, it sends a message of:

• Stable growth environment

• Improving infrastructure base

• Strong market demand

This encourages domestic and foreign investors to invest in real estate, smart cities, and infrastructure projects.

5. Support for Government Schemes

Growth in these sectors also means that government projects like PMAY (housing), Bharatmala (roads), and Gati Shakti (infrastructure) are progressing well. These initiatives aim to modernize India’s development landscape, and strong steel/cement output supports their implementation.

Key Highlights

• Steel and Cement are leading contributors to India’s core industry growth.

• Despite low performance in coal, crude oil, and electricity, steel and cement helped keep overall growth in the positive zone.

• This trend shows India’s focus on urban development, affordable housing, and infrastructure projects.

What to Expect in the Future?

If this momentum continues:

• India may see faster project completions in highways, metro networks, and smart cities.

• Prices of cement and steel may fluctuate depending on demand and supply.

• Growth in these sectors will lead to more jobs and better business for related industries.

Conclusion

Steel and Cement are the backbone of infrastructure. Their strong growth in Q1 FY 2025–26 is a sign that India’s development projects are on the right track. It’s good news for the economy and for everyone looking forward to a stronger and modern India.