Data Alert
July core sector growth slows to 5.4% as iron ore growth eases
This story was originally published at 18:52 IST on 20 August 2026
Register to read our real-time news.--India Jul nine core industries' growth 5.4%
--India Jul nine core industries' growth 5.4% vs 6.0% in Jun
--India Apr-Jul nine core industries' growth 4.3% vs 1.5% year ago
Informist, Thursday, Aug. 20, 2026
NEW DELHI – The growth in India's nine core industries eased to 5.4% in July from 6.0% a month earlier as growth in iron ore output slowed sharply to 29.5% in July from 44.5% in June, data released Thursday by the commerce ministry showed.
Last month, the Ministry of Commerce and Industry released a new series of the Index of Core Industries, with 2022-23 (Apr-Mar) as the base year. In the new series, the ministry added iron ore to the existing basket of eight core industries – coal, crude oil, natural gas, petroleum refinery products, fertilisers, steel, cement, and electricity.
The nine core industries had grown 3.2% in July last year. Sequentially, the index of nine core industries rose 0.4% in July. Core sector output in Apr-Jul rose 4.3%, up from 1.5% a year ago.
Of the nine sectors, output grew in six. Year-on-year output growth in coal, refinery products and cement rose, while growth moderated in steel, electricity and iron ore. Output of natural gas, crude oil and fertilisers contracted year-on-year in July.
Growth in cement production rose to 13.1% in June from 9.9% a month earlier. Growth in electricity production eased to a three-month low of 9.0% from 11.4%. "Slowdown in electricity generation was possibly due to reduced demand, following a temperature reduction unlike peak summers," Devendra Pant, chief economist at India Ratings and Research, said in a note.
Growth in coal output jumped to an 11-month high of 7.6% in July from 1.4% in June. Refinery products output growth rose to a nine-month high of 2.7% last month from a 4.0% contraction in June.
Growth in steel output eased to 2.9% in July from 5.6% in June. "Steel production growth slowed to a multi-year low... due mainly to an extremely adverse base effect," Miguel Chanco, chief Emerging Asia economist, said in a note.
Output of natural gas declined 3.7% in July against a contraction of 4.8% a month earlier. Production of crude oil and fertilisers also contracted 5.3% and 8.0% on year, respectively, in July. "Fertiliser output has contracted for the fifth consecutive month, reflecting the impact of the West Asia conflict," Aditi Nayar, chief economist at ICRA, said in a note.
Given the trends in core output, economists expect the IIP growth to moderate to around 6.0-6.5% in July from 7.3% in June. "Looking more broadly, downside risks to headline GDP growth stemming from previously soft core output growth continue to recede," Chanco said.
The following tables give the year-on-year changes in the index of the nine infrastructure sectors in July:
| July 2026 | June 2026 | July 2025 | |
| Coal | 7.6% | 1.4% | (-)12.3% |
| Crude oil | (-)5.3% | (-)4.2% | (-)0.8% |
| Natural gas | (-)3.7% | (-)4.8% | (-)3.3% |
| Refinery products | 2.7% | (-)4.0% | (-)1.4% |
| Fertilisers | (-)8.0% | (-)3.3% | 1.9% |
| Steel | 2.9% | 5.6% | 15.7% |
| Cement | 13.1% | 9.9% | 11.1% |
| Electricity | 9.0% | 11.4% | 3.7% |
| Iron Ore | 29.5% | 44.5% | (-)7.1% |
| Overall | 5.4% | 6.0% | 3.2% |
| Apr-Jul 2026-27 | Apr-Jul 2025-26 | |
| Coal | (-)3.1% | (-)3.0% |
| Crude oil | (-)4.3% | (-)1.5% |
| Natural gas | (-)4.4% | (-)2.9% |
| Refinery products | (-)2.5% | (-)0.3% |
| Fertilisers | (-)5.2% | (-)2.3% |
| Steel | 4.5% | 11.0% |
| Cement | 9.9% | 8.1% |
| Electricity | 9.3% | (-)0.2% |
| Iron Ore | 25.2% | (-)5.5% |
| Overall | 4.3% | 1.5% |
Source: Ministry of Commerce and Industry
End
Reported by Shweta
Edited by Saji George Titus
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