New Delhi: India’s eight core infrastructure sectors grew 5.4% in July 2026 from a year earlier, easing from the revised 6% growth recorded in June, according to provisional data released by the ministry of commerce and industry on Thursday.
The July growth was led by iron ore, cement and electricity, which expanded 29.5%, 13.1% and 9%. Coal output rose 7.6%, while steel and refinery products grew 2.9% and 2.7%. Natural gas, crude oil and fertiliser production, however, contracted during the month.
The eight core industries together account for 40.27% of the weight of items included in the Index of Industrial Production (IIP), making the core sector data an important indicator of industrial activity.
Iron ore, electricity and cement have remained the major drivers of overall core-sector growth in recent months. Iron ore output, in particular, recorded its third straight month of double-digit growth, although its July growth of 29.5% was lower than the 44.5% expansion recorded in June.
Cement production grew 13.1% in July, accelerating from 9.9% in June, while electricity generation rose 9%, moderating from 11.4% in the previous month. Coal output also turned stronger, growing 7.6% in July compared with 1.4% in June.
Steel production growth, however, eased to 2.9% in July from 5.6% in June. Refinery products returned to growth at 2.7% in July after contracting 4% in June.
On the negative side, fertilizer production contracted 8% in July, following a 3.3% decline in June. Crude oil output fell 5.3%, compared with a 4.2% contraction in June, while natural gas production declined 3.7%, narrowing from a 4.8% fall in the previous month.
For the first four months of the current fiscal year, the core sector expanded 4.3%, significantly higher than the 1.5% growth recorded during April-July 2025.
The cumulative performance was supported particularly by iron ore, which grew 25.2% during April-July 2026, followed by cement at 9.9% and electricity at 9.3%. Steel output rose 4.5% during the period.
However, coal, natural gas, crude oil, refinery products and fertilizers contracted during the April-July period by 3.1%, 4.4%, 4.3%, 2.5% and 5.2%, respectively.
The government also revised the core sector index for June 2026 upward. The final index was revised to 120.7 from the earlier provisional estimate of 119.6. As a result, the year-on-year growth rate for June was revised to 6% from the provisional 5%.
The overall core-sector index stood at 121.2 in July, up from 120.7 in June.
The July data comes against a stronger cumulative industrial backdrop, with the core sector’s April-July growth more than doubling from the 1.5% expansion recorded in the corresponding period of the previous year. The acceleration has been driven largely by mining-linked sectors such as iron ore and by electricity and cement, even as weakness persists in oil, gas and fertilizers.
The provisional Index of Core Industries for August 2026 will be released on 21 September 2026.
Harsh Kumar is a policy reporter at Mint (HT Media Group), where he covers the Ministry of Commerce and Industry along with key departments of the Ministry of Finance, including the Department of Economic Affairs (DEA) and the Department of Financial Services (DFS). With over five years of experience in business and economic journalism, he has developed strong expertise in tracking policy developments and their wider economic impact.<br><br>He has previously worked with Business Standard, Moneycontrol, and Outlook Money, where he reported extensively on banking, financial services, and the broader economy. Over the years, he has built a reputation for delivering accurate, insightful, and impactful stories, supported by a keen eye for detail and a consistent track record of breaking exclusive news.<br><br>An alumnus of Jamia Millia Islamia, Harsh closely follows regulatory changes and key economic trends shaping India’s financial and industrial landscape. His reporting aims to simplify complex policy issues for a wider audience while maintaining depth and credibility.<br><br>Outside of work, he enjoys tracking policy developments, finding scoops, and travelling, reflecting his curiosity about how economic decisions shape everyday life.
