Data Alert
Growth in India core sector output at 3-month low of 4.8% in August
This story was originally published at 18:33 IST on 21 September 2026
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--India Aug nine core industries' growth 4.8%
--India Aug nine core industries' growth 4.8% vs 5.0% in Jul
--India Apr-Aug nine core industries' growth 4.3% vs 2.4% year ago
NEW DELHI – Growth in the output of India's nine core sector industries eased to a three-month low of 4.8% in August, mainly dragged down by iron ore sector output, data released Monday by the commerce ministry showed. The factory output growth in August was supported by cement and electricity production last month.
The Ministry of Commerce and Industry is now tracking production data of nine core industries under the new series with 2022-23 (Apr-Mar) as the base year, revised from FY12 in the old series. In the new series, the Department for Promotion of Industry and Internal Trade 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 6.2% in August last year. Sequentially, the index of nine core industries fell 1.3% in August. Core sector output in Apr-Aug rose 4.3%, up from 2.4% a year ago.
Of the nine sectors, output rose in five. Year-on-year output growth was higher in the case of electricity, cement, and steel, while growth moderated in refinery products and iron ore. Output in coal, natural gas, crude oil, and fertilisers contracted year-on-year in August.
Growth in electricity production rose to a 27-month high of 11.6% in August from 8.4% a month earlier, reflecting healthy demand during the month. Excluding this, core output rose just around 1.6% in August compared to 3.4% in July, according to ICRA.
Steel production saw growth of 3.4% last month, against 1.9% in July, while growth in cement production slipped to 12.5% in August from 12.7% in July.
In August, growth in refinery products and iron ore production eased to 2.6% and 5.5%, respectively. The refinery products and iron ore industries had reported 3.0% amd 29.5% output growth, respectively, in July.
On the other hand, coal sector output contracted 3.8% in August, against growth of 7.6% in July. Output of natural gas declined 4.9% in August, against contraction of 3.0% a month earlier. "Among the mining-related segments, coal and iron ore saw a material deterioration in their performance in August, largely owing to an adverse base," Rahul Agrawal, principal economist at ICRA, said in a note. "These two together pulled down the headline core output growth by as much as 130 basis points between these months," he added.
Production of crude oil and fertilisers contracted 3.6% and 12.4% on year, respectively, in August.
Given the trends in core sector output, ICRA expects IIP growth to ease to around 5.0-6.0% in August from 6.7% in July.
The following tables give the year-on-year changes in the index of the nine infrastructure sectors in August:
| Aug-26 | Jul-26 | Aug-25 | |
| Coal | (-)3.8% | 7.6% | 10.8% |
| Crude oil | (-)3.6% | (-)5.3% | (-)0.7% |
| Natural gas | (-)4.9% | (-)3.0% | (-)2.2% |
| Refinery products | 2.6% | 3.0% | 3.4% |
| Fertilisers | (-)12.4% | (-)8.0% | 4.5% |
| Steel | 3.4% | 1.9% | 15.3% |
| Cement | 12.5% | 12.7% | 5.4% |
| Electricity | 11.6% | 8.4% | 4.2% |
| Iron Ore | 5.5% | 29.5% | 7.9% |
| Overall | 4.8% | 5.0% | 6.2% |
| Apr-Aug 2026-27 | Apr-Aug 2025-26 | |
| Coal | (-)3.2% | (-)0.7% |
| Crude oil | (-)4.1% | (-)1.4% |
| Natural gas | (-)4.4% | (-)2.7% |
| Refinery products | (-)1.4% | 0.4% |
| Fertilisers | (-)6.7% | (-)0.9% |
| Steel | 4.1% | 11.8% |
| Cement | 10.3% | 7.6% |
| Electricity | 9.6% | 0.7% |
| Iron Ore | 21.8% | (-)3.4% |
| Overall | 4.3% | 2.4% |
Source: Ministry of Commerce and Industry
End
Reported by Shweta
Edited by Avishek Dutta
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