Weak energy-linked sectors drag growth, while steel and cement offer partial support.

India’s Core Sector Output Falls 0.4% in March 2026, Lowest Since August 2024

India’s core industrial activity contracted by 0.4% year-on-year in March 2026, marking its weakest performance since August 2024, according to official data from India. The decline was led by sharp weakness in fertilisers, crude oil, coal and electricity generation, all of which reported negative growth during the month. Fertiliser output saw the steepest fall at 24.6%, followed by crude oil at 5.7% and coal at 4%. Electricity generation also slipped marginally. The Index of Eight Core Industries, which accounts for about 40% of the Index of Industrial Production (IIP), showed a mixed trend, with natural gas rising 6.4% and moderate growth recorded in steel, cement and refinery products. Despite the March contraction, the core sector expanded by 2.6% during the full financial year 2025–26. Construction-linked sectors such as steel and cement remained strong, offsetting part of the slowdown caused by stress in energy-related industries amid global supply disruptions.