Core sector growth slows to 4.8% in August 2026; cement and power lead
India's eight core industries grew 4.8% in August 2026, down from 5% in July and 6.2% a year earlier. Coal, crude oil, natural gas and fertilisers contracted.
Output of India's eight core infrastructure industries grew 4.8% year on year in August 2026, according to provisional data from the Ministry of Commerce and Industry released on 21 September 2026. Growth slowed from 5.0% in July 2026 (final figure) and from 6.2% in August 2025.
The Index of Core Industries (ICI) tracks output in key infrastructure sectors such as coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity. It is watched as an early indicator of industrial activity.
Sector-wise growth, August 2026
| Industry | Growth (YoY) |
|---|---|
| Cement | 12.5% |
| Electricity | 11.6% |
| Iron ore | 5.5% |
| Steel | 3.4% |
| Refinery products | 2.6% |
| Coal | -3.8% |
| Crude oil | -3.6% |
| Natural gas | -4.9% |
| Fertilisers | -12.4% |
Cumulative picture
For April–August 2026, core sector output grew 4.3%, compared with 2.4% in the same period last year. The ministry said iron ore, electricity and cement have been the main contributors to growth in recent months.
What it shows
- Construction is strong: Double-digit growth in cement points to continued construction and infrastructure activity.
- Higher power demand: Electricity output rose 11.6%.
- Energy and fertilisers were weak: Domestic coal, crude oil and natural gas production fell, as did fertiliser output. This matters while global energy supply is disrupted.
The August figures are provisional and may be revised when the final index is published next month.
Frequently asked questions
How much did core industries grow in August 2026?
They grew 4.8% year on year (provisional), down from 5.0% in July.
Which sectors contracted?
Coal, crude oil, natural gas and fertilisers.
Sources
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