India’s Core Sector Growth Slows to 5.4 Percent in July
Output in the eight key infrastructure industries eased from a revised 6 percent in June, with strong gains in iron ore and cement offset by contractions in crude oil, natural gas and fertiliser.
New Delhi1 min read
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India’s eight core infrastructure sectors grew 5.4 percent year-on-year in July 2026, slowing from a revised 6 percent in June, according to provisional data from the Ministry of Commerce and Industry.
Iron ore production rose 29.5 percent, cement output expanded 13.1 percent and electricity generation increased 9 percent. Coal production grew 7.6 percent, while steel and refinery products recorded gains of 2.9 percent and 2.7 percent.
Crude oil production fell 5.3 percent, natural gas output declined 3.7 percent and fertiliser production contracted 8 percent. These declines offset part of the expansion in the other segments.
On a cumulative basis, core sector output rose 4.3 percent during April-July 2026, compared with 1.5 percent in the same period of the previous year. Iron ore, cement and electricity remained the main contributors to the four-month performance.
The moderation comes as the Index of Core Industries reflects activity in sectors that form a large share of industrial production. Six of the tracked industries registered positive growth while three contracted.
Refinery products returned to expansion after three consecutive months of decline. The data provide an early reading on the strength of infrastructure-related demand ahead of fuller industrial production figures.
