Infrastructure & Core Industries Output
Infrastructure & Core Industries Output: Key Updates
Core Sector (Index of Eight Core Industries) Overview – Apr 2026
Overall Growth (YoY):
India’s Eight Core Industries, the economic bedrock that drives 40.27% of the country’s broader Index of Industrial Production (IIP), began FY 2026-27 on a measured note. The combined Index of Eight Core Industries (ICI) grew 1.7% year-on-year in April 2026 (provisional), a modest but positive start to the new financial year.
The reading must be placed in context. The full-year cumulative ICI for FY 2025-26 (April 2025 to March 2026) grew 2.7%, a steady if moderated performance compared to 4.5% in FY25 and 7.6% in FY24. The final growth rate for March 2026 was revised to 1.2%.
Key Takeaways
- The overall ICI grew 1.7% in April 2026 (provisional), a modest but positive start to FY 2026-27, following a cumulative 2.7% growth in FY 2025-26.
- Cement led all sectors with 9.4% YoY growth in April 2026, buoyed by strong construction activity, extending its FY26 full-year momentum of 8.7%.
- Steel remained resilient with 6.2% YoY growth in April 2026, cementing its position as the top performer of FY 2025-26 with a full-year cumulative gain of 9.5%.
- Electricity generation rose 4.1% YoY, supported by rising summer demand and steady industrial activity, contributing positively to the headline index.
- Coal contracted sharply by 8.7% YoY in April 2026, the steepest decline among all eight sectors, reflecting weak offtake and a high base from the previous year.
- Crude Oil and Natural Gas continued their prolonged decline, falling 3.9% and 4.3% respectively in April 2026, with both sectors posting a cumulative 2.8% contraction in FY 2025-26.
- Fertilizer output fell 8.6% YoY in April 2026, raising concerns about agricultural input availability ahead of the critical Kharif sowing season.
- Petroleum Refinery Products, the single largest component with a 28.04% weight in ICI, slipped 0.5% YoY, a marginal but closely watched dip given its outsized influence on the headline number.
Sector-by-Sector Deep Dive
Star Performers
Steel (Weight- 17.92%): Steel retained its position as the top performer, delivering the highest full-year growth of 9.5% in FY 2025-26, driven by sustained government capex in infrastructure, roads, and housing. April’s 6.2% YoY growth signals a strong carryover into FY27, supported by an expanded product basket including HRPO steel and robust order books in construction and manufacturing.
Cement (Weight- 5.37%): Cement posted the strongest monthly growth among all eight sectors in April 2026, rising 9.4% YoY. The momentum reflects sustained construction activity under PMAY, highway expansion, and smart city projects. With FY26 closing at 8.7% cumulative growth, Cement enters FY27 on a strong footing, tracking real estate and infrastructure demand.
Electricity (Weight- 19.85%): Electricity generation rose 4.1% YoY in April 2026, supported by rising summer cooling demand and steady industrial offtake. Renewable capacity additions continue to broaden the generation mix, providing structural support. The sector’s FY26 cumulative growth of 1.0% masks a stronger underlying demand trend heading into peak summer months.
Sectors Under Stress
Coal (Weight- 10.33%): Coal recorded the steepest monthly decline among all sectors in April 2026, falling 8.7% YoY. The contraction reflects a combination of a high base from April 2025, softer thermal power dispatch, and logistical constraints at pit heads. FY26 closed with a marginally negative result at −0.5%, with production dominated by Coal India. Volatility in monthly output remains a persistent feature.
Fertilizers (Weight- 2.63%): Fertilizer output fell sharply by 8.6% YoY in April 2026, following the dramatic 24.6% collapse in March 2026. The back-to-back declines raise concern about agricultural input availability ahead of the critical Kharif sowing season. Gas supply disruptions — which account for approximately 90% of urea production costs — and lingering effects of Middle East tensions continue to weigh on plant utilisation. Government measures, including increased subsidies, higher gas allocation, and emergency import contracts, offer a near-term cushion.
Crude Oil (Weight- 8.98%): Crude Oil output declined 3.9% YoY in April 2026, extending a prolonged structural slide. Ageing fields, reservoir depletion, and limited success from Enhanced Oil Recovery (EOR) efforts continue to weigh on domestic production. The index remains significantly below base-year levels, reflecting long-term erosion with no near-term reversal in sight.
Natural Gas (Weight- 6.88%): Natural Gas reversed its March 2026 uptick — when it had surged 6.4% — falling 4.3% YoY in April. The reversal points to base effects and supply normalisation following the brief KG Basin-driven improvement. FY26 closed negative at −2.8%, reflecting earlier geopolitical supply disruptions that weighed on the full-year average.
Petroleum Refinery Products (Weight- 28.04%): Refinery output dipped 0.5% YoY in April 2026, remaining broadly stagnant. Despite high installed capacity, demand fluctuations and elevated crude input costs constrained throughput. Given its dominant 28.04% weight in the ICI, any sustained weakness here poses a meaningful drag on the headline index — making this the single most important sector to watch in the months ahead.
Macro Context & Key Risk Factors
Electricity Demand as a Leading Indicator: Electricity generation growth of 4.1% in April 2026, typically a strong demand month due to summer heat, is consistent with a recovering industrial base. Historically, electricity growth above 4% in April signals healthy broader IIP performance in the subsequent months. This is a mildly encouraging signal for Q1 FY27 industrial output.
Geopolitical Supply Disruptions: Ongoing Middle East tensions and Strait of Hormuz vulnerability continue to pose the single largest exogenous risk to India’s core sector outlook. India imports approximately 85% of its crude oil needs, and a significant share of LNG; any escalation in freight costs or supply blockages would simultaneously hit Refinery Products, Fertilizers, and Natural Gas output, compressing three major ICI components at once.
Fertilizer Supply Chain Fragility: Back-to-back double-digit monthly declines signal that the fertilizer supply chain has not yet stabilised. With Kharif sowing peaking between June and August, a continued shortfall in domestic urea production, combined with emergency imports at near-double global prices ($935-$959/tonne), risks squeezing farm margins and pressuring food inflation.
Core Industries Output: Historical Chart
India Core Sector & Infrastructure Output - Historical & Current Trends
Core Industries Output: MoM
Sector-wise growth rate - MoM (%)
| Months | Overall Growth rate | Coal | Crude Oil | Natural Gas | Petroleum Refinery Products | Fertilizers | Steel | Cement | Electricity |
|---|---|---|---|---|---|---|---|---|---|
| Apr-26* | 1.7 | -8.7 | -3.9 | -4.3 | -0.5 | -8.6 | 6.2 | 9.4 | 4.1 |
| Mar-26 | 1.2 | -4 | -5.7 | 6.4 | 0.1 | -24.6 | 7.7 | 4.7 | 0.8 |
| Feb-26 | 2.8 | 2.3 | -5.2 | -5 | -1 | 3.4 | 7.6 | 8.9 | 2.3 |
| Jan-26 | 4.7 | 3.1 | -5.8 | -5 | 0 | 3.7 | 11.5 | 11.3 | 5.2 |
| Dec-25 | 4.7 | 3.6 | -5.6 | -4.4 | -1 | 4.1 | 10.1 | 13.7 | 6.3 |
| Nov-25 | 2.1 | 2.1 | -3.2 | -2.5 | -0.9 | 5.6 | 6.7 | 14.6 | -1.5 |
| Oct-25 | -0.1 | -8.5 | -1.2 | -5 | 4.6 | 7.4 | 5.9 | 5.2 | -6.9 |
| Sep-25 | 3.3 | -1.2 | -1.3 | -3.8 | -3.7 | 1.6 | 14.4 | 5 | 3.1 |
| Aug-25 | 6.5 | 11.4 | 2.4 | -2.2 | 3 | 4.6 | 13.6 | 5.4 | 4.1 |
| Jul-25 | 3.7 | -12.3 | -1.3 | -3.2 | -1.1 | 2.0 | 16.6 | 11.6 | 3.7 |
| Jun-25 | 2.2 | -6.8 | -1.2 | -2.8 | 3.4 | -1.2 | 9.7 | 8.2 | -1.2 |
| May-25 | 1.2 | 2.8 | -1.8 | -3.6 | 1.1 | -5.9 | 7.4 | 9.7 | -4.7 |
| Apr-25 | 1.0 | 3.5 | -2.8 | -0.9 | -4.5 | -4.2 | 4.4 | 6.3 | 1.7 |
| Mar-25 | 4.5 | 1.6 | -1.9 | -12.7 | 0.2 | 8.8 | 8.7 | 12.2 | 7.5 |
| Feb-25 | 3.4 | 1.7 | -5.2 | -6.0 | 0.8 | 10.2 | 6.9 | 10.7 | 3.6 |
| Jan-25 | 5.1 | 4.6 | -1.1 | -1.5 | 8.3 | 3.0 | 4.7 | 14.3 | 2.3 |
| Dec-24 | 5.1 | 5.3 | 0.6 | -1.8 | 2.8 | 1.7 | 7.3 | 10.3 | 6.2 |
| Nov-24 | 5.8 | 7.5 | -2.1 | -1.9 | 2.9 | 2.0 | 10.5 | 13.1 | 4.4 |
| Oct-24 | 3.8 | 7.8 | -4.8 | -1.2 | 5.2 | 0.4 | 5.7 | 3.1 | 2.0 |
| Sep-24 | 2.4 | 2.6 | -3.9 | -1.3 | 5.8 | 1.9 | 1.8 | 7.6 | 0.5 |
| Aug-24 | -1.5 | -8.1 | -3.4 | -3.6 | -1.0 | 3.2 | 4.1 | -2.5 | -3.7 |
| Jul-24 | 6.3 | 6.8 | -2.9 | -1.3 | 6.6 | 5.3 | 7.0 | 5.1 | 7.9 |
| Jun-24 | 5.0 | 14.8 | -2.6 | 3.3 | -1.5 | 2.4 | 6.3 | 1.8 | 8.6 |
| May-24 | 6.9 | 10.2 | -1.1 | 7.5 | 0.5 | -1.7 | 8.9 | -0.6 | 13.7 |
| Apr-24 | 6.9 | 7.5 | 1.7 | 8.6 | 3.9 | -0.8 | 9.8 | 0.2 | 10.2 |
Core Industries Output: YoY
Core Sector Growth Rate: YoY (%)
| Year | Overall Growth | Coal | Crude Oil | Natural Gas | Petroleum Refinery Products | Fertilizers | Steel | Cement | Electricity |
|---|---|---|---|---|---|---|---|---|---|
| 2025–26 (Apr–Mar)* | 2.7% | -0.5 | -2.8 | -2.8 | -0.1 | -0.1 | 9.5 | 8.7 | 1 |
| 2024–25 | 4.5 | 5.1 | -2.2 | -1.2 | 2.8 | 2.9 | 6.8 | 6.3 | 5.2 |
| 2023–24 | 7.6 | 11.8 | 0.6 | 6.1 | 3.6 | 3.7 | 12.5 | 8.9 | 7.1 |
| 2022–23 | 7.8 | 14.8 | -1.7 | 1.6 | 4.8 | 11.3 | 9.3 | 8.7 | 8.9 |
| 2021–22 | 10.4 | 8.5 | -2.6 | 19.2 | 8.9 | 0.7 | 16.9 | 20.8 | 8 |
| 2020–21 | -6.4 | -1.9 | -5.2 | -8.2 | -11.2 | 1.7 | -8.7 | -10.8 | -0.5 |
| 2019–20 | 0.4 | -0.4 | -5.9 | -5.6 | 0.2 | 2.7 | 3.4 | -0.9 | 0.9 |
| 2018–19 | 4.4 | 7.4 | -4.1 | 0.8 | 3.1 | 0.3 | 5.1 | 13.3 | 5.2 |
| 2017–18 | 4.3 | 2.6 | -0.9 | 2.9 | 4.6 | 0 | 5.6 | 6.3 | 5.3 |
| 2016–17 | 4.8 | 3.2 | -2.5 | -1 | 4.9 | 0.2 | 10.7 | -1.2 | 5.8 |
| 2015–16 | 3 | 4.8 | -1.4 | -4.7 | 4.9 | 7 | -1.3 | 4.6 | 5.7 |
| 2014–15 | 4.9 | 8 | -0.9 | -5.3 | 0.2 | 1.3 | 5.1 | 5.9 | 14.8 |
| 2013–14 | 2.6 | 1 | -0.2 | -12.9 | 1.4 | 1.5 | 7.3 | 3.7 | 6.1 |
| 2012–13 | 3.8 | 3.2 | -0.6 | -14.4 | 7.2 | -3.3 | 7.9 | 7.5 | 4 |
About Core Sector (Index of Eight Core Industries)
Overview – The Core Sector, officially known as the Index of Eight Core Industries (ICI), measures the monthly output of eight key infrastructure industries that form the backbone of India’s industrial economy.
These sectors are called “core” because their performance strongly influences overall industrial production (IIP) and the country’s economic growth. Together, they contribute about 40% of the weight in India’s Index of Industrial Production (IIP).
The Eight Core Industries of India –
India’s Core Sector consists of eight key infrastructure industries that are crucial to the nation’s industrial and economic growth. Together, they make up about 40% of the weight in the Index of Industrial Production (IIP). Here’s what each sector represents:
- Coal (10.33%) – Coal production is used mainly for electricity generation and industrial fuel.
- Crude Oil (8.98%) – Extraction of domestic crude oil used in refineries and energy supply.
- Natural Gas (6.88%) – Production of natural gas from onshore and offshore fields for power and manufacturing.
- Refinery Products (28.04%) – Output of petroleum refineries, including petrol, diesel, and other fuels.
- Fertilizers (2.63%) – Manufacturing of chemical fertilizers that support the agriculture sector.
- Steel (17.92%) – Production of finished steel is essential for construction, automobiles, and infrastructure.
- Cement (5.37%) – Cement output is used in housing, roads, and infrastructure development.
- Electricity (19.85%) – Generation of power from thermal, hydro, and renewable sources.
FAQs
It measures monthly production in eight key industries — Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity — which form the backbone of India’s industrial economy.
It’s a leading indicator of industrial health, showing how India’s major sectors are performing and influencing GDP, investment, and overall economic momentum.
The data is released by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce & Industry, Government of India.
The Core Sector Output is published monthly, usually on the last working day of each month, showing performance for the previous month.
Yes. It’s compiled from official government sources such as Coal India, ONGC, and the Ministry of Power. Data is provisional initially and revised later if needed.
It helps analysts, investors, and policymakers track industrial trends, forecast demand, and assess India’s economic growth trajectory.
Related Indicators
Other Indicators
Monetary Policy & Banking Indicators
Inflation and Price Indicators
GDP & Economic Growth Indicators
Trade & External Sector Indicators
Consumer & Labour Market Indicators
Important
If you notice any discrepancies in the data or find any inaccuracies, please let us know. We will review and correct them as soon as possible.
