Agencies | New Delhi:
India’s Index of Core Industries (ICI) recorded year-on-year growth of 5.4 per cent in July 2026, according to provisional estimates released by the Ministry of Commerce and Industry.
The growth rate was lower than the 6 per cent expansion recorded in June. However, the performance during the first four months of the current financial year remained significantly stronger than a year earlier, with cumulative growth during April-July 2026 standing at 4.3 per cent, compared with 1.5 per cent during the corresponding period last year.
Iron ore emerged as the fastest-growing core sector in July, with output rising 29.5 per cent year-on-year. Cement production increased 13.1 per cent, while electricity generation grew 9 per cent during the month.
Coal output expanded 7.6 per cent, followed by steel at 2.9 per cent and refinery products at 2.7 per cent.
Iron ore, electricity and cement continued to be the principal contributors to growth in the eight-sector core industries index in recent months.
Despite the overall expansion, growth remained uneven across the core sectors.
Natural gas production declined 3.7 per cent year-on-year in July, while crude oil output contracted 5.3 per cent. Fertiliser production also registered an 8 per cent decline during the month.
The contraction in key energy and fertiliser segments offset part of the gains recorded by mining, electricity and construction-linked sectors.
The government also revised the core sector index for June upward to 120.7 from the provisional estimate of 119.6.
Following the revision, the year-on-year growth rate for June was raised to 6 per cent from the earlier estimate of 5 per cent.
During April-July 2026, iron ore recorded the highest cumulative growth among the eight core sectors at 25.2 per cent.
Cement followed with cumulative growth of 9.9 per cent, while electricity output increased 9.3 per cent during the period.
The performance indicates continued strength in mining, construction-related activity and power generation, although several energy-intensive segments continued to face contraction.
The eight core industries—coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity—account for a significant share of the Index of Industrial Production (IIP), making their performance an important indicator of industrial activity and the broader economic momentum.
