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India's Core Industries Dip 0.4% in March, Fertiliser Output Plummets

India's eight core infrastructure industries recorded a 0.4% decline in production in March compared to the same month last year. The contraction was driven by sharp falls in fertiliser, crude oil, and coal output, despite growth in natural gas, steel, and cement. The cumulative growth for the fiscal year 2025-26 stands at 2.6%. These core sectors hold significant weight in the Index of Industrial Production, serving as a key indicator of broader economic activity.

Key Points: India's Eight Core Industries Output Falls 0.4% in March

  • Overall index declined 0.4% in March
  • Fertiliser output fell sharply by 24.6%
  • Steel and cement production posted growth
  • Cumulative FY 2025-26 growth stands at 2.6%
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Eight core industries record 0.4 per cent dip in production in March

India's eight core sectors saw a 0.4% decline in March. Fertiliser production fell sharply by 24.6%, while steel and cement grew.

"The cumulative growth rate... now works out to 2.6 per cent compared to the same period of last year. - Commerce and Industry Ministry"

New Delhi, April 20

The combined index of India's eight core infrastructure industries declined 0.4 per cent in March this year compared to the same month of the previous year, according to data released by the Commerce and Industry Ministry on Monday.

While the production of natural gas, steel, and cement went up during the month, the output of fertilisers, crude oil, coal, and electricity recorded a negative growth, according to a ministry statement.

The final growth rate of the eight core industries for February was observed at 2.8 per cent. The cumulative growth rate of the combined index during April to March, 2025-26, now works out to 2.6 per cent compared to the same period of last year.

Steel production recorded a 2.2 per cent increase in March over the same month of the previous year, while the cement sector clocked a 4 per cent growth during the month as demand for these products was maintained due to large government investments in big-ticket infrastructure projects.

The production of natural gas increased by 6.4 per cent during March as the output was stepped up following the disruption in gas supplies from the Middle East due to the Iran war. The government has also been encouraging consumers to switch to natural gas from LPG as supplies have been hit due to the closure of the Strait of Hormuz.

The production of petroleum products also increased marginally by 0. 1 per cent during March as the government maintained supplies of petrol, diesel and jet fuel at the normal level.

Coal production decreased by 4 per cent in March over the same month of the previous year, while electricity generation declined by 0.5 per cent.

Crude oil fell by 5.7 per cent during the month, while fertiliser production declined by 24.6 per cent in March compared to the same month of the previous year.

The Index of Eight Core Industries (ICI) measures the combined and individual performance of production of eight core industries--coal, crude oil, natural gas, refinery products, fertilisers, 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) and are a good indicator of the overall industrial growth in the economy.

- IANS

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Reader Comments

S
Sarah B
The 24.6% decline in fertiliser production is alarming. This is the peak season for Kharif crops. If this shortage continues, it will directly impact food prices and farmer incomes. The government needs to address this urgently.
A
Arjun K
Good to see natural gas and steel doing well. The shift to gas is a smart move given the global situation. But the drop in coal and electricity is a reminder that our energy transition needs careful planning. We can't afford power cuts in the summer!
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Priya S
While the headline number is negative, there's a mixed picture. Cement at 4% growth is excellent news for construction and real estate jobs. The overall industrial growth seems stable, but we must keep an eye on crude oil production. Jai Hind!
M
Michael C
Respectfully, a 0.4% dip might seem small, but it's a leading indicator. With core industries having over 40% weight in IIP, this slowdown needs proactive policy measures, not just optimism. The focus should be on reviving coal and fertiliser output.
K
Kavya N
The increase in natural gas production is a silver lining. It shows we are adapting to global supply chain issues. Hopefully, this will help keep CNG and PNG prices in check for us common people. 🙏

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