India's core infra industries clock 0.5 per cent growth in May
New Delhi, June 22
The combined index of India's eight core infrastructure industries increased by 0.5 per cent during May this year compared to the same month of the previous year, with cement, steel, and electricity recording positive growth, according to data released by the Commerce and Industry Ministry on Monday.
Meanwhile, the final growth rate of the eight core industries for April 2026 was revised to 1.8 per cent. The cumulative growth rate of the core industries during April to May 2026-27 now works out to 1.1 per cent compared to the corresponding period of last year.
Steel production recorded a 5 per cent increase in May over the same month of the previous year, while the cement sector clocked a robust 8.4 per cent growth during the month as demand for these products stayed buoyant due to large government investments in big-ticket infrastructure projects such as highways, ports, and railways.
Electricity generation increased by 8.7 per cent in May, compared to the same month of the previous year.
However, coal production decreased by 9.3 per cent during the month while crude oil output declined by 4.6 per cent.
The production of natural gas fell by 4.9 per cent in May this year compared to the same month last year, while the output of refinery products fell 8.7 per cent during the month.
Fertiliser production dipped by 0.9 per cent in May due to the decline in raw materials caused by the West Asia conflict.
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
Reader Comments
Finally some good news for infrastructure! 🎉 The 8.4% growth in cement and 5% in steel show that our highways and railways projects are actually progressing on ground. I was getting tired of seeing only roadmaps and no action. Hope this continues for the next few months. Government should focus on reducing the decline in coal and gas though.
The 1.1% cumulative growth for April-May is a modest start. I'm watching the fertilizer sector - 0.9% decline due to West Asia conflict is concerning. India needs to secure more diversified supply chains for raw materials. Otherwise even modest industrial growth could get hit by external shocks. At least electricity generation is up 8.7% which is good for households and businesses.
Core sectors growing at 0.5% - that's barely crawling when we need to be running. The electricity growth is great, but fertilizer and oil declines are worrying. With 40.27% weight in IIP, these 8 industries are our economic backbone. If this is the best we can show, our overall industrial growth won't hit 7%+ targets. Need to ask why coal output dropped 9.3% despite all the mining reforms announced.
Interesting data. The strong performance in steel and cement aligns with the infrastructure push we've been hearing about. But the crude oil decline (-4.6%) and refinery products (-8.7%) are red flags - especially since India imports most of its oil needs. Higher global prices will impact. The 8.7% electricity growth is a positive sign for summer demand being met. Overall a mixed bag.
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