India's core infrastructure sector experienced a moderation in its year-on-year growth, slowing to 5.4% in July 2026. This figure marks a decrease from the revised 6% growth recorded in June, according to provisional data released by the Ministry of Statistics and Programme Implementation on August 20.
The eight core industries, which collectively represent 40.27% of the weight in the broader Index of Industrial Production (IIP), demonstrated robust cumulative growth of 4.3% during the April-July 2026 period. This is a significant increase compared to the 1.5% growth observed in the corresponding period of the previous year.
Key Sector Performance in July
- Iron Ore: Leading the expansion, iron ore production surged by 29.5% year-on-year.
- Cement: The cement sector also showed strong performance, with output increasing by 13.1%.
- Electricity: Generation of electricity rose by 9% during the month.
- Coal: Coal production saw a solid growth of 7.6%.
- Steel: The steel industry recorded a 2.9% increase in output.
- Refinery Products: Production of refinery products grew by 2.7%.
Conversely, three crucial sectors experienced contraction in July. Natural gas, crude oil, and fertilisers all registered negative year-on-year growth, indicating challenges within these segments of the economy.
June Data Revised Upward
The latest data also included an upward revision of the final core sector index for June. The June index was adjusted to 120.7 from an earlier provisional estimate of 119.6. Consequently, June’s year-on-year growth rate was sharply revised higher to 6%, up from the initial provisional estimate of 5%. This revision provides a clearer picture of industrial activity in the preceding month.
Government officials highlighted iron ore, electricity, and cement as the primary engines driving overall growth across the core industries in recent months, underscoring their critical role in India's industrial landscape.