India’s core sector output contracted 0.4% year-on-year in March 2026 (provisional), according to the provisional data released by the Ministry of Commerce and Industry on Monday, 20 April.
This marks a weak end to the financial year, with sharp declines in fertiliser, crude oil, coal and electricity dragging the index into negative territory, amid ongoing West Asia tensions and associated supply disruptions impacting energy-linked sectors.
The contraction follows a final growth of 2.8% recorded in February 2026.
For the full financial year 2025-26, core sector growth stood at 2.6%, down from 4.5% in 2024-25, 7.6% in 2023-24 and 7.8% in 2022-23, reinforcing a clear multi-year slowdown in infrastructure-linked output.
The eight core industries, which account for 40.27% of the weight in the Index of Industrial Production (IIP), are considered a key leading indicator of overall industrial activity.
Among sectors, fertiliser output recorded the steepest decline in March, falling 24.6% year-on-year.
During the month, crude oil production declined 5.7%, while coal output dropped 4.0%. Electricity generation also contracted 0.5%.
Meanwhile, natural gas production rose 6.4%, while cement and steel output increased 4.0% and 2.2% respectively.
Refinery products, which carry the highest weight in the index, were largely flat, with a marginal 0.1% increase.
The March contraction comes despite relatively strong performance in steel and cement during the year, with cumulative growth of 9.1% and 8.6% respectively in FY26, while crude oil output remained under pressure and natural gas showed mixed trends.
