The ICI measures the combined and individual performance of production of eight core industries viz. Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity. The Eight Core Industries comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP).
The production of Fertilizers, Crude Oil, Coal and Electricity recorded negative growth in March 2026.
The final growth rate of Index of Eight Core Industries for February 2026 was observed at 2.8 per cent. The cumulative growth rate of ICI during April to March, 2025-26 is 2.6 per cent (provisional) as compared to the corresponding period of last year.
Coal production decreased by 4.0 per cent in March, 2026 over March, 2025.
“Core sector output in March 2026 plummeted to 19 months low due to sharp contraction in fertilizer output. Fertiliser output in March 2026 declined by 24.6 per cent, fastest decline in 2011-12 base data,” Devendra Pant, Chief Economist, India Ratings and Research, said.
The gas supply to fertiliser industry was reduced to 70-75 per cent in March 2026 due to Iran war, which is now increased to around 95 per cent. This is likely to have an adverse impact on fertilizer production even in April 2026 also. Natural gas production witnessed positive growth was only positive point in March 2026 core sector data, it was 22 months high at 6.4 per cent, more importantly, natural gas production grew yoy after June 2024, he noted.
Annually, FY26 growth at 2.6 per cent was at a five-year low. Barring cement (8.6 per cent), electricity (0.9 per cent) and steel (9.1 per cent) all other sector contracted in FY26.
India Ratings expects core sector to grow around 2 per cent in April 2026.
Read more here: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2253812®=3&lang=1
