India's core sector growth slowed markedly to 0.7% in May 2025, marking the lowest expansion in nine months compared to 6.9% in May 2024 and 1.0% in April 2025. The eight core infrastructure sectors include coal, crude oil, refinery products, natural gas, fertilizers, cement, steel, and electricity, with half of these sectors experiencing sharp contractions. Concurrently, the country's industrial production growth also decelerated to a nine-month low of 1.2% in May 2025, down from 2.7% in April. This slowdown was attributed to a high base effect from the previous year, unseasonal rains, and poor performance in manufacturing, mining, and power sectors. However, manufacturing activity showed signs of recovery with the HSBC India Manufacturing Purchasing Managers’ Index (PMI) rising to 58.4 in June 2025 from 57.6 in May, reaching a 14-month high. The PMI slightly declined to 59.1 in July from 59.2 in June but remained elevated, driven by new orders and output growth. The HSBC India PMI Composite stood at 60.7 in July 2025, slightly below June’s 61.0, while the services PMI dipped marginally to 59.8 from 60.4.