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Core Sector Output Dips 0.4% in March; Steel, Cement Lead FY26 Growth

India's eight core infrastructure sectors saw a 0.4% year-on-year decline in output for March 2026, according to provisional data from the Ministry of Commerce and Industry. The drop was primarily driven by sharp falls in fertilizer, crude oil, coal, and electricity production. However, sectors like natural gas, steel, and cement recorded growth during the month. For the full 2025-26 fiscal year, the cumulative growth rate stood at 2.6%, with steel and cement emerging as the strongest performers.

Key Points: India's Core Sector Output Falls 0.4% in March 2026

  • March output dragged by sharp fertilizer decline
  • Steel and cement show strong full-year growth
  • Coal and crude oil production fell in March
  • Cumulative FY26 growth holds at 2.6%
3 min read

Core sector output slips 0.4% in March, but FY26 growth holds steady led by steel, cement

India's eight core industries' output declined 0.4% in March 2026, dragged by fertilizers and coal, but FY26 saw steady growth led by steel and cement.

"The combined Index of Eight Core Industries declined by 0.4 per cent (provisional) in March, 2026 - Ministry of Commerce and Industry"

New Delhi, April 20

The combined Index of Eight Core Industries declined 0.4 per cent year-on-year in March 2026, according to official data released on Monday, with lower output in fertilizers, crude oil, coal and electricity weighing on the overall reading.

As per the statement released by the Ministry of Commerce and Industry, "The combined Index of Eight Core Industries (ICI) declined by 0.4 per cent (provisional) in March, 2026 as compared to the Index in March, 2025." It added that "the production of Fertilizers, Crude Oil, Coal and Electricity recorded negative growth in March, 2026."

The Combined Index of Eight Core Industries (ICI) is a monthly gauge tracking production growth in India's eight most critical infrastructure sectors--coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity. The Eight Core Industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).

The ministry said the final growth rate of the Index of Eight Core Industries for February 2026 stood at 2.8 per cent. It also said, "The cumulative growth rate of ICI during April to March, 2025-26 is 2.6 per cent (provisional) as compared to the corresponding period of last year."

Among the sectors, coal production fell 4 per cent in March 2026 over the same month last year, while crude oil output declined 5.7 per cent.

Fertilizer production saw the sharpest drop, falling 24.6 per cent year-on-year, while electricity generation slipped 0.5 per cent.

The Ministry said, "Coal production ... decreased by 4.0 per cent," "Crude Oil production ... declined by 5.7 per cent," "Fertilizer production ... declined by 24.6 per cent," and "Electricity generation ... declined by 0.5 per cent in March, 2026 over March, 2025."

At the same time, some sectors recorded growth during the month. Natural gas production increased 6.4 per cent, steel output rose 2.2 per cent, cement production was up 4 per cent, and petroleum refinery products inched up 0.1 per cent.

The release said, "Natural Gas production ... increased by 6.4 per cent," "Steel production ... increased by 2.2 per cent," "Cement production ... increased by 4.0 per cent," and "Petroleum Refinery production ... increased by 0.1 per cent in March, 2026 over March, 2025."

On the cumulative performance for FY26, steel and cement remained the strongest performers among the eight sectors. The ministry said steel production's "cumulative index increased by 9.1 per cent during April to March, 2025-26," while cement production's "cumulative index increased by 8.6 per cent" over the corresponding period of the previous year.

Electricity posted cumulative growth of 0.9 per cent, while coal, crude oil, natural gas, refinery products and fertilizers showed declines on a full-year basis.

The government said data for February 2026 is final, while data for March 2026 is provisional. It added that the next release of the index for April 2026 will be issued on May 20, 2026.

- ANI

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Reader Comments

S
Sarah B
On the positive side, steel and cement showing strong cumulative growth (9.1% and 8.6%) is a good sign for infrastructure and construction. That's where the real job creation happens. Hope this momentum continues.
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Arjun K
Overall growth holding steady at 2.6% for the full year is the key takeaway. A single month's dip can be due to many factors. The core sectors are the backbone of the economy, and as long as steel and cement are strong, the foundation is solid. 💪
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Priyanka N
The decline in coal and crude oil output is worrying. We are still too dependent on imports for our energy needs. We need to fast-track renewable projects and explore domestic sources more aggressively. Jai Hind!
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Karthik V
While the headline number is negative, we must look at the details. Natural gas up 6.4% is excellent news for a cleaner energy mix. The minor dip in electricity (0.5%) is manageable. The data is mixed, not all bad.
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Michael C
Respectfully, a 0.4% decline in the core sector index cannot be brushed aside. It reflects underlying stress in key industrial inputs. The government's press releases often highlight the positive, but we need honest analysis of these dips to formulate better policy.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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