India’s core sector growth slowed to 2.3% year-on-year in February 2026, driven by expansion in cement, steel, fertilisers, coal, and electricity, according to official data.
The Index of Eight Core Industries (ICI), which tracks key infrastructure sectors, had recorded a higher growth of 4.7% in January 2026.
What is the Core Sector?
The eight core industries include:
- Coal
- Crude oil
- Natural gas
- Refinery products
- Fertilisers
- Steel
- Cement
- Electricity
These sectors together account for 40.27% weight in the Index of Industrial Production (IIP), making them a key indicator of industrial activity.
Cement and Steel Drive Growth
Among the sectors, cement production led growth:
- Cement: +9.3%
- Steel: +7.2%
- Fertilisers: +3.4%
- Coal: +2.3%
- Electricity: +0.5%
Strong demand from infrastructure and construction activities supported cement and steel output.
Decline in Oil and Gas Segments
However, some sectors recorded contraction:
- Crude oil: –5.2%
- Natural gas: –5.0%
- Refinery products: –1.0%
The decline in energy-related sectors weighed on overall growth.
Cumulative Growth at 2.9% (April–February)
For the current financial year (April–February), the core sector recorded 2.9% cumulative growth (provisional).
Sector-wise performance (cumulative):
- Steel: +9.7%
- Cement: +9.2%
- Fertilisers: +2.0%
- Electricity: +0.9%
Declining sectors:
- Crude oil: –2.5%
- Natural gas: –3.5%
- Refinery products: –0.1%
Mixed Signals for Industrial Growth
The data reflects mixed trends in India’s infrastructure sectors, with strong performance in construction-linked industries offset by weakness in oil and gas production.
Economists view core sector growth as a key precursor to overall industrial output, making upcoming IIP data crucial for assessing broader economic momentum.
