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The Index of Core Industries (ICI) grew 5.4 per cent year-on-year in July 2026, according to provisional estimates released by the Ministry of Commerce and Industry.
While growth moderated from the 6 per cent recorded in June, the sector maintained a healthy pace of expansion, with cumulative growth during April-July 2026 reaching 4.3 per cent, significantly higher than the 1.5 per cent growth recorded in the corresponding period a year earlier. Iron ore recorded the strongest expansion among the eight core sectors, rising 29.5 per cent year-on-year in July. Electricity output increased 9 per cent, while cement production grew 13.1 per cent. Coal and steel output rose 7.6 per cent and 2.9 per cent, respectively, while refinery products increased 2.7 per cent. The strong performance of these sectors points to continued activity in infrastructure, construction and industrial demand. The government identified iron ore, electricity and cement as the major drivers of overall core sector growth in recent months. However, the recovery remained uneven. Natural gas output declined 3.7 per cent, crude oil contracted 5.3 per cent, and fertiliser production fell 8 per cent in July. The June core sector index was also revised upward to 120.7 from the provisional 119.6, resulting in a revision in year-on-year growth to 6 per cent from the earlier estimate of 5 per cent. On a cumulative basis, April-July growth was led by iron ore at 25.2 per cent, cement at 9.9 per cent and electricity at 9.3 per cent, while several energy-related segments continued to contract. India's core sector activity is expected to remain supported by strong momentum in mining, cement and power, with iron ore, electricity and cement emerging as the key drivers of growth in July, even as weakness in natural gas, crude oil and fertiliser output weighed on the overall performance. (ANI)
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