Mining and quarrying output remained weak in the first half of financial year 2026-27, with the production index declining in five of the six months despite the broader industrial sector showing strength. According to reports from Business Standard, even as the Index of Industrial Production (IIP) grew by at least 5 per cent in every month of H1FY27, the mining and quarrying sector faced significant challenges. The sector's decline was particularly pronounced during the monsoon months, with production falling below the base year levels of 2022-23 in all three months from July to September.
Fuel minerals emerged as the primary contributor to the sector's weakness, contracting year-on-year in five months of H1FY27. As reported by Business Standard, fuel minerals production remained below the base year levels in every month of this period, including September when it showed a year-on-year increase. The sustained underperformance of fuel minerals significantly impacted the overall mining and quarrying output during the first half of the financial year.
Non-metallic minerals also contributed to the sector's decline, contracting year-on-year in every month of H1FY27. According to the data from Business Standard, while non-metallic minerals production was less than the base year's levels in the latter three months of July, August, and September, they were still able to push the overall mining and quarrying output higher during this period. The consistent year-on-year contraction in non-metallic minerals added to the sector's overall weakness.
Despite the overall sector challenges, metallic minerals, including rare-earth minerals, mainly pushed mining and quarrying during the first half of FY27. As reported by Business Standard, while fuel minerals and non-metallic minerals drove the decline, the metallic minerals segment helped offset some of the weakness in the sector. The performance of rare-earth minerals specifically contributed to the sector's ability to maintain some positive momentum despite the challenges faced by other mining categories.
