Growth in core sectors slows to 5.4% in July 2026
India's core industrial sector growth slowed to 5.4% in July 2026, impacted by contractions in natural gas and crude oil and a significant slowdown in steel and fertilizer production. Despite the deceleration, the data shows some recovery in refinery products and coal.
Why it matters
Core sector performance is a key indicator of India's broader economic health and industrial output, signaling potential challenges in manufacturing and energy sectors.
Economic activity in India’s core industrial sectors saw growth slow to 5.4% in July 2026 from 6% in June, according to official data released on Thursday (August 20, 2026). This was driven by a significant slowdown in the fertilisers, iron ore, and steel sectors, accompanied by a continued contraction in the natural gas and crude oil sectors.
The data on the Index of Core Industries (ICE) released by the Ministry of Commerce and Industry, however, showed that July’s growth was still the second-fastest in seven months. The Ministry released a new series of the ICE in July, which means that a historical comparison is possible only up to June 2025.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in