India's core sector output slows to 4.8% in August as coal, gas, crude oil and fertilisers contract
India’s core sector output growth slowed to 4.8% year-on-year in August 2026 from 5% in July, provisional government data showed. Cement, electricity and iron ore led growth, while coal, natural gas, crude oil and fertilisers contracted. Cumulative core sector growth during April-August stood at 4.3%, against 2.4% a year earlier.
India's core sector output growth decelerated to 4.8% year-on-year in August 2026, according to provisional government data released on Monday. This marked a slowdown from the 5.0% growth observed in the previous month of July. The eight core industries responsible for 40.27% of the Index of Industrial Production (IIP) experienced varied growth rates in August.
Cement production increased by 12.5%, electricity rose by 11.6%, iron ore grew by 5.5%, steel output expanded by 3.4%, and refinery products saw a 2.6% increase. Conversely, coal, natural gas, crude oil, and fertiliser production contracted in the month. Among the key drivers of overall growth in the Index of Core Industries (ICI), iron ore, electricity, and cement emerged as the primary contributors over recent months.
The cumulative growth of the core sector from April to August 2026 stood at 4.3% on a provisional basis, compared to 2.4% in the same period of the previous year. The final July index was revised to 120.8 from the initial estimate of 121.2, resulting in a downward revision of the year-on-year growth rate to 5.0% from 5.4%.
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