India Core Sector Growth Slows to 5.4%

India's Index of Core Industries (ICI) grew 5.4% year-on-year in July 2026, easing from a revised 6% in June, according to provisional data from the India — Ministry of Trade and Industry. The eight core sectors, which account for 40.27% of the Index of Industrial Production (IIP) weight, showed uneven performance. Iron ore led with a 29.5% surge, followed by cement (13.1%) and electricity (9%). Coal and steel grew 7.6% and 2.9%, respectively, while refinery products rose 2.7%. However, natural gas (-3.7%), crude oil (-5.3%), and fertilizer (-8%) contracted. Cumulative April-July growth reached 4.3%, up from 1.5% a year earlier. The June index was revised upward to 120.7 from 119.6, lifting its growth rate to 6% from 5%. The data indicates continued infrastructure and construction demand, though energy and fertilizer weakness persists.