Core industries growth slows to 5.4% in July as iron ore, power ease

India's infrastructure sector output expanded 5.4% year-on-year in July 2026, a slight slowdown from the revised 6% growth seen in June, according to government data released on Thursday. The July figure represents a 0.6 percentage-point decline compared to the previous month's revised 6% increase.

The data encompasses nine crucial infrastructure sectors covered by the revamped Index of Core Industries (ICI), which employs 2022-23 as the base year. Iron ore is included as the ninth sector in the new series, replacing the earlier 2011-12-based one.

In July, key drivers of infrastructure sector growth included iron ore (29.5%), cement (13.1%), electricity (9%), coal (7.6%), steel (2.9%), and refinery products (2.7%). However, natural gas, crude oil, and fertilizer output declined during the month. Iron ore, electricity, and cement have consistently been the leading contributors to overall infrastructure sector growth in recent months.

Overall, the Index of Core Industries grew 4.3% cumulatively from April to July 2026, compared to 1.5% growth in the same period a year earlier. This stronger cumulative performance signifies a broader improvement in core-sector activity, despite the moderation in overall growth in July.