India’s eight core industries grew just 2.3% in February 2026, marking a three-month low. Energy-related sectors including crude oil, natural gas, and refinery products contracted, while electricity growth slowed sharply. In contrast, steel and cement recorded robust gains, driven by government infrastructure projects. The slowdown raises concerns about industrial momentum.
Government data released on March 20 shows the Index of Eight Core Industries (ICI) easing to 2.3% growth in February, compared to 4.7% in January. The core sector accounts for over 40% of India’s industrial output, making it a key indicator of economic health.
Sector Performance
• Crude oil output fell over 5% year-on-year
• Natural gas production declined 3.5% cumulatively (April–February FY26)
• Refinery products contracted by 1%
• Electricity generation rose just 0.5%, down from 5.2% in January
• Steel output surged 7% and cement grew 9%
• Fertilizers and coal recorded modest gains
Economic Impact
The slowdown highlights vulnerabilities in India’s energy sector, even as infrastructure-led demand boosts steel and cement. Economists warn that global energy volatility and regional crises could further pressure industrial growth, requiring policy support to stabilize supply and sustain momentum.
Key Highlights
• Core sector growth slowed to 2.3% in February 2026
• Energy industries contracted, dragging overall performance
• Steel and cement posted strong growth above 7–9%
• Electricity generation growth fell sharply to 0.5%
• Core sector accounts for 40% of industrial output
Sources: The Economic Times, CNBC TV18, The Hindu, Fortune India, NewsBytes