Archive · 21 Sep 2026
India’s Core Sector Growth Slows to 4.8% in August
India’s main industrial sectors grew by 4.8% in August 2026 compared with August last year.
This was a little slower than the revised growth rate of 5% in July.
Cement production grew the most, while electricity output also increased strongly.
Iron ore, steel and refinery products recorded smaller increases.
Coal, crude oil, natural gas and fertiliser production all fell.
Fertiliser production had the largest decline, dropping 12.4%.
Overall growth during April-August was better than during the same period a year earlier.
A separate survey said manufacturing was still expanding, but companies saw weaker demand.
The eight core industries make up 40.27% of India’s industrial production index.
India’s Index of Core Industries grew 4.8% year-on-year in August 2026, down from July’s revised 5%.
Cement and electricity led growth, rising 12.5% and 11.6%, respectively.
Iron ore, steel and refinery products also increased, by 5.5%, 3.4% and 2.6%.
Coal, crude oil, natural gas and fertiliser production contracted in August.
Core-sector growth reached 4.3% during April-August 2026, compared with 2.4% a year earlier.
- Who
- India’s eight core industries, measured through the Index of Core Industries and reported by the Office of the Economic Adviser.
- What
- The Index of Core Industries grew 4.8% year-on-year in August 2026.
- When
- August 2026, with cumulative data covering April-August 2026.
- Where
- India.
- Why
- Growth was driven mainly by cement, electricity and iron ore, while declines in coal, oil, gas and fertiliser production moderated the overall result.
- August growth
- 4.8% year-on-year, based on provisional data
- July growth
- Revised to 5.0% from an earlier provisional estimate of 5.4%
- Leading sector
- Cement production rose 12.5%
- Electricity output
- Increased 11.6%
- Largest contraction
- Fertiliser production fell 12.4%
- April-August growth
- 4.3%, compared with 2.4% in the corresponding period a year earlier
- IIP weighting
- The eight core industries account for 40.27% of the Index of Industrial Production
