Core Sector Output Slips 0.4% in March 2026; Fertilizers, Crude Oil Drag Index
The decline was driven by negative growth in fertilizers, crude oil, coal and electricity, reflecting sector-specific pressures even as construction-linked segments such as steel and cement remained resilient.
On a cumulative basis, the ICI grew 2.6% during April 2025 to March 2026, indicating that the overall industrial momentum remained positive despite the March contraction.
New Delhi: India’s core sector output contracted marginally in March 2026, with the Index of Eight Core Industries (ICI) declining 0.4% year-on-year, according to data released by the Ministry of Commerce & Industry on Monday.
The decline was driven by negative growth in fertilizers, crude oil, coal and electricity, reflecting sector-specific pressures even as construction-linked segments such as steel and cement remained resilient.
The ICI measures the combined performance of eight key industries—coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity—which together account for 40.27% of the weight of items included in the Index of Industrial Production.
Fertilizer output registered the steepest fall, declining 24.6% in March, followed by crude oil at 5.7% and coal at 4.0%. Electricity generation also dipped 0.5% during the month.
In contrast, natural gas output grew 6.4%, while steel and cement production expanded by 2.2% and 4.0% respectively, signalling continued traction in infrastructure and construction activity. Refinery products recorded a marginal increase of 0.1%.
The latest data marks a sharp moderation from February 2026, when the core sector had recorded a growth of 2.8%. On a cumulative basis, the ICI grew 2.6% during April 2025 to March 2026, indicating that the overall industrial momentum remained positive despite the March contraction.
Among the eight industries, refinery products hold the highest weight in the index at 28.04%, followed by electricity at 19.85% and steel at 17.92%, making their performance critical to overall movement in the core sector.
A closer look at the monthly trend shows a gradual easing in growth over the past three months, with expansion slowing from 4.7% in January to 2.8% in February before slipping into negative territory in March.
Despite the short-term volatility, the long-term trajectory of the core sector remains upward, with the overall index rising significantly over the past decade, underpinned by sustained growth in steel, cement and electricity production.
The March data is provisional and may undergo revision as updated inputs are received from source agencies, the government added.
