India’s core sector growth moderated to 2.3 per cent in February 2026 on a year-on-year basis, according to data released by the Ministry of Commerce and Industry.
The slowdown comes after a 4.7 per cent growth recorded in January, indicating some loss of momentum in industrial activity.
The Index of Eight Core Industries (ICI), which tracks the performance of key infrastructure sectors, showed mixed trends across components, reflecting divergence between construction-linked sectors and energy segments.
The eight core industries – Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity – together account for 40.27 per cent of the weight in the Index of Industrial Production (IIP), making the data a key leading indicator for overall industrial growth and economic activity.
Among the sectors, Cement recorded the highest growth of 9.3 per cent in February 2026, followed by Steel at 7.2 per cent and Fertilizers at 3.4 per cent, signalling continued strength in construction and infrastructure demand.
Coal output also rose by 2.3 per cent, while Electricity generation saw a modest increase of 0.5 per cent during the month, suggesting steady but not accelerated demand conditions.
However, the energy segment continued to weigh on overall performance, a trend that aligns with broader global developments affecting supply chains and pricing.
Crude Oil production declined by 5.2 per cent, Natural Gas output fell by 5.0 per cent, and Refinery Products registered a contraction of 1.0 per cent on a year-on-year basis, highlighting persistent weakness in domestic hydrocarbon output.
The pressure on the energy segment comes amid ongoing geopolitical tensions in West Asia, which have disrupted shipping routes, increased freight and insurance costs, and impacted crude, LPG and LNG supply dynamics.
On a cumulative basis, the core sector grew by 2.9 per cent during April to February 2025-26, compared to the corresponding period of the previous year.
Steel and Cement remained key growth drivers during this period, with cumulative growth of 9.7 per cent and 9.2 per cent respectively, reflecting sustained infrastructure and construction activity.
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