New Delhi: India’s core sector growth slowed to 5.4 per cent year-on-year in July from 6 per cent in June despite several mining and infrastructure-linked sectors continuing to register healthy expansion during the month.
Iron ore production recorded the strongest growth among the eight sectors, rising 29.5 per cent in July, while cement output increased 13.1 per cent and electricity generation grew 9 per cent.
Coal production also expanded 7.6 per cent, pointing to continued activity across mining, construction and power-related segments.
Steel and refinery products recorded more moderate growth of 2.9 per cent and 2.7 per cent, respectively. While these sectors remained in positive territory, their slower expansion, alongside contractions in parts of the energy sector, contributed to the moderation in overall core sector growth.
Crude oil production declined 5.3 per cent year-on-year in July, while natural gas output fell 3.7 per cent during the month. Fertiliser production contracted 8 per cent, marking the sharpest decline among the eight core industries and adding to the pressure on overall growth.
The weakness in these three sectors partly offset the strong performance of iron ore, cement and electricity. These sectors have remained key contributors to core sector growth in recent months, helping maintain positive momentum despite uneven performance across the broader infrastructure basket.
The Index of Core Industries (ICI) tracks eight major infrastructure sectors and accounts for 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP). Its performance is closely watched as an early indicator of activity in the broader industrial economy.
Despite the July moderation, core sector output grew 4.3 per cent during April-July 2026, significantly higher than the 1.5 per cent expansion recorded in the corresponding period last year. The cumulative data therefore points to a stronger start to the financial year, even as monthly growth has begun to moderate.
The government also revised June’s core sector growth upwards to 6 per cent from the earlier provisional estimate of 5 per cent. The final June index stood at 120.7, compared with the provisional reading of 119.6, indicating a stronger performance than initially reported.
The July figures remain provisional and could be revised as more data becomes available. The provisional core sector data for August 2026 is scheduled to be released on 21 September, providing the next indication of momentum across the key infrastructure sectors. (BVI)
