Core sector output slips 0.4% in March, but FY26 growth holds steady led by steel, cement

As per the statement released by the Ministry of Commerce and Industry, "The combined Index of Eight Core Industries (ICI) declined by 0.4 per cent (provisional) in March, 2026 as compared to the Index in March, 2025." It added that "the production of Fertilizers, Crude Oil, Coal and Electricity recorded negative growth in March, 2026."

The Combined Index of Eight Core Industries (ICI) is a monthly gauge tracking production growth in India's eight most critical infrastructure sectors--coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity. The Eight Core Industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).

The ministry said the final growth rate of the Index of Eight Core Industries for February 2026 stood at 2.8 per cent. It also said, "The cumulative growth rate of ICI during April to March, 2025-26 is 2.6 per cent (provisional) as compared to the corresponding period of last year."

Among the sectors, coal production fell 4 per cent in March 2026 over the same month last year, while crude oil output declined 5.7 per cent.

Fertilizer production saw the sharpest drop, falling 24.6 per cent year-on-year, while electricity generation slipped 0.5 per cent.

The Ministry said, "Coal production ... decreased by 4.0 per cent," "Crude Oil production ... declined by 5.7 per cent," "Fertilizer production ... declined by 24.6 per cent," and "Electricity generation ... declined by 0.5 per cent in March, 2026 over March, 2025."

At the same time, some sectors recorded growth during the month. Natural gas production increased 6.4 per cent, steel output rose 2.2 per cent, cement production was up 4 per cent, and petroleum refinery products inched up 0.1 per cent.

The release said, "Natural Gas production ... increased by 6.4 per cent," "Steel production ... increased by 2.2 per cent," "Cement production ... increased by 4.0 per cent," and "Petroleum Refinery production ... increased by 0.1 per cent in March, 2026 over March, 2025."

On the cumulative performance for FY26, steel and cement remained the strongest performers among the eight sectors. The ministry said steel production's "cumulative index increased by 9.1 per cent during April to March, 2025-26," while cement production's "cumulative index increased by 8.6 per cent" over the corresponding period of the previous year.

Electricity posted cumulative growth of 0.9 per cent, while coal, crude oil, natural gas, refinery products and fertilizers showed declines on a full-year basis.

The government said data for February 2026 is final, while data for March 2026 is provisional. It added that the next release of the index for April 2026 will be issued on May 20, 2026. (ANI)