India's eight core infrastructure sectors recorded a two-month high growth of 1.7% in April 2026, according to provisional data released by the Ministry of Commerce and Industry. This represents a significant improvement from the 1% growth recorded in April 2025 and the 1.2% growth achieved in March 2026. The core sector expansion was primarily driven by higher output in steel, cement and electricity sectors, with fertiliser sector recovery also contributing to the overall improvement. The cumulative growth rate of ICI during April to March 2025-26 is 2.7% compared to the corresponding period of last year. The eight core industries — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity — together account for 40.27% of the Index of Industrial Production (IIP), making them a key indicator of industrial activity in the country.
Steel production emerged as the strongest performer with 6.2% growth during April 2026, while cement output demonstrated robust expansion with 9.4% growth, marking a three-month high from 4.7% in March 2026, according to the Ministry of Commerce and Industry data. Electricity generation also contributed positively with 4.1% growth during the month, hitting a three-month peak. However, output from coal, crude oil, natural gas, refinery products and fertiliser recorded negative growth during the period under review. Coal production declined 8.7% year-on-year, crude oil fell 3.9%, natural gas output declined 4.3%, petroleum refinery products slipped 0.5%, and fertiliser production contracted 8.6% during April 2026. Among the sectors, steel recorded the highest cumulative annual growth at 9.5% during 2025-26, followed by cement at 8.7%, while electricity generation rose by 1% over the year.
The most significant development was the easing of fertiliser sector contraction to 8.6% in April from its steepest decline since April 2012 of 24.6% in March 2026, as reported by Business Standard. Megha Arora, Director - Economics at India Ratings & Research, noted there had been improvement in gas availability for the fertiliser industry at present compared to March. The agency expects the sector's production to improve from May onwards, with India Ratings & Research forecasting 3% growth in May 2026 due to a low base and likely improved fertilizer production. For the full financial year 2025-26, crude oil and natural gas output declined by 2.8% each, while coal production contracted by 0.5%.
Rahul Agrawal, Senior Economist at ICRA Ltd, noted that the improvement in core sector growth remained limited despite a favourable base effect and was driven largely by a few sectors. As many as five of the eight sectors registered a contraction in output during April 2026, barring steel, cement and electricity generation, suggesting that economic activity in some sectors was impacted by the West Asia crisis. This is likely to reflect in tepid IIP growth in April 2026, with the overall ICI reading falling to a five-month low of 166 in April from 185.1 in March 2026. The ministry noted that electricity generation data includes renewable energy sources since April 2014, and data for April 2026 remain provisional and may be revised based on updated information from source agencies. The next release of the Index of Eight Core Industries for May 2026 is scheduled for June 22, 2026.
