India’s core sector growth slows to 0.5 per cent in May

India’s eight core infrastructure industries recorded a modest 0.5 per cent growth in May, led by strong performances in cement, steel and electricity. However, declines in coal, crude oil, natural gas, refinery products and fertiliser production weighed on overall growth

New Delhi: The combined index of India’s eight core infrastructure industries increased by 0.5 per cent during May this year compared to the same month of the previous year, with cement, steel, and electricity recording positive growth, according to data released by the Commerce and Industry Ministry on Monday.

Meanwhile, the final growth rate of the eight core industries for April 2026 was revised to 1.8 per cent. The cumulative growth rate of the core industries during April to May 2026-27 now works out to 1.1 per cent compared to the corresponding period of last year.

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Steel production recorded a 5 per cent increase in May over the same month of the previous year, while the cement sector clocked a robust 8.4 per cent growth during the month as demand for these products stayed buoyant due to large government investments in big-ticket infrastructure projects such as highways, ports, and railways.

Electricity generation increased by 8.7 per cent in May, compared to the same month of the previous year.

However, coal production decreased by 9.3 per cent during the month while crude oil output declined by 4.6 per cent.

The production of natural gas fell by 4.9 per cent in May this year compared to the same month last year, while the output of refinery products fell 8.7 per cent during the month.

Fertiliser production dipped by 0.9 per cent in May due to the decline in raw materials caused by the West Asia conflict.

The Index of Eight Core Industries (ICI) measures the combined and individual performance of production of eight core industries — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity. The eight core industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP) and are a good indicator of the overall industrial growth in the economy.