Core sector growth at 1.7% in April led by steel, cement output

India's eight core sectors grew 1.7% in April 2026, a slight rise from March's 1.2%. The growth was driven by steel, cement, and electricity, while five sectors, including coal and crude oil, saw a contraction, according to government data.

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.

Sector-wise Performance

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.

Expert Analysis

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)

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