India's core sector grew 1.7% in April led by cement, steel and electricity
New Delhi, May 20
India's eight core infrastructure sectors grew 1.7 per cent in April 2026, with higher output in cement, steel and electricity partially offsetting declines in coal, crude oil, natural gas, refinery products and fertilizers, according to official data released by the Ministry of Commerce and Industry.
"The combined Index of Eight Core Industries (ICI) increased by 1.7 per cent (provisional) in April 2026 as compared to the Index in April 2025," the ministry said.Among the sectors, coal production declined 8.7 per cent in April 2026 compared to the same month last year.
Crude oil production fell 3.9 per cent, while natural gas output declined 4.3 per cent year-on-year. Petroleum refinery products output slipped 0.5 per cent, while fertilizer production contracted 8.6 per cent during the month.
On the positive side, steel production rose 6.2 per cent in April, cement output increased 9.4 per cent and electricity generation grew 4.1 per cent year-on-year.
The ministry said the eight core industries together account for 40.27 per cent of the weight of the Index of Industrial Production (IIP), making them a key indicator of industrial activity in the country.
"The final growth rate of Index of Eight Core Industries for March 2026 was observed at 1.2 per cent," the ministry said.
"The cumulative growth rate of ICI during April to March 2025-26 is 2.7 per cent as compared to the corresponding period of last year," it added.
Reacting to the data, Rahul Agrawal, Senior Economist at ICRA Ltd, said the improvement in core sector growth remained limited despite a favourable base effect and was driven largely by a few sectors.
"The year-on-year (YoY) growth in core sector output inched up to 1.7 per cent in April 2026 from the upward revised 1.2 per cent in March 2026, while remaining quite subdued despite a favourable base. The uptick in growth in April 2026 relative to March 2026 was largely driven by electricity generation and cement, along with a narrower drag from fertilisers," Agrawal said.
"Notably, as many as five of the eight sectors registered a contraction in output during the month, barring steel, cement and electricity generation, suggesting that economic activity in some sectors was impacted by the West Asia crisis. This is likely to reflect in tepid IIP growth in April 2026, for which data will be released on the much-awaited new base," he added.
The eight core industries -- coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity -- together account for 40.27 per cent of the Index of Industrial Production (IIP).
— ANI
Reader Comments
The government keeps talking about 'vibrant economy' but 5 out of 8 sectors are in contraction. Fertilizer production down 8.6% is scary for our farmers. Hope the new base year data shows a clearer picture.
Steel up 6.2% and cement up 9.4% - that's the infrastructure push at work. But the energy sector decline is serious. We need to reduce dependence on imported crude oil. At least electricity generation is up 4.1%! 💪
Interesting data. The West Asia crisis is definitely affecting global supply chains. India's core sector growth is modest but the cement and steel numbers show domestic demand is still there. The fertilizer contraction is a red flag though.
Only 3 out of 8 sectors showing growth is really concerning. The base effect is favourable but still only 1.7%? Government should focus more on reducing input costs for industries. Our manufacturing sector needs better support.
This is a mixed bag. The construction sector is clearly driving growth, but the energy sector decline is a structural issue. The West Asia tensions are hitting oil and gas hard. What's the plan for energy security?
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