India’s Core Sector Growth Eases To 1.7% In April As Cement And Steel Stay Strong

India’s infrastructure output growth eased to 1.7% in April 2026, according to provisional data released by the Ministry of Commerce and Industry. The latest numbers show a mixed trend across the country’s eight core industries, with strong performance in cement, steel and electricity partly offsetting contraction in five other sectors.

The combined Index of Eight Core Industries tracks output across coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity. These sectors carry a 40.27% weight in the Index of Industrial Production, making them an important indicator of industrial and infrastructure activity in the country.

Cement production recorded the strongest growth in April, rising 9.4% year on year. Steel output also remained firm with 6.2% growth, reflecting continued demand from infrastructure, construction and manufacturing activity. Electricity generation increased 4.1%, supporting overall core sector performance during the month.

However, weakness in energy and commodity linked sectors weighed on the index. Coal production declined 8.7% from a year earlier, while crude oil output fell 3.9%. Natural gas production dropped 4.3%, refinery products slipped 0.5% and fertiliser production contracted 8.6%.

The government said the final growth rate for March 2026 stood at 1.2%, compared with the provisional April growth of 1.7%. For the full financial year 2025-26, the eight core industries posted cumulative growth of 2.7%.

During FY26, steel was the strongest performer with cumulative growth of 9.5%, followed by cement at 8.7%. Electricity generation grew 1% during the year. In contrast, crude oil and natural gas output each declined 2.8%, while coal fell 0.5%. Refinery products and fertilisers recorded marginal contractions of 0.1% each.

The April data underlines the uneven recovery within India’s core sectors. While cement and steel continue to benefit from infrastructure and construction demand, weakness in coal, oil, gas and fertilisers shows that industrial momentum remains selective. Sustained growth in construction linked sectors will be key for supporting broader economic activity in the coming months.