India’s core-sector output grows 5.4% in July as coal, cement and power advance
India’s nine core infrastructure sectors recorded 5.4% production growth in July 2026, up from 3.2% a year earlier but below June’s 6%. Coal, refinery products, cement, electricity and iron ore expanded, while crude oil, natural gas and fertilizer output declined.
Core industries maintain growth
Production across India’s nine core infrastructure sectors increased 5.4% in July 2026, according to government data reported by Amar Ujala. The result exceeded the 3.2% growth recorded in July 2025, indicating stronger activity in industries that supply energy, construction materials and other essential inputs to the wider economy.
The July expansion was slightly slower than the 6% increase registered in June 2026. Even so, the latest figures show that aggregate core-sector production continued to rise after the start of the new financial year. For manufacturers, construction companies and commodity suppliers, the direction of these industries offers an important indication of demand for fuel, minerals and industrial materials.
Growth was also stronger over the longer reporting period. From April through July of the 2026-27 financial year, combined output in the nine sectors rose 4.3%. The corresponding period a year earlier produced growth of only 1.5%, according to the figures cited by Amar Ujala.
Coal, cement and electricity support the index
Coal production increased during July, alongside gains in refinery products, cement and electricity. Iron ore output also recorded notable growth. Together, these industries lifted the overall index and pointed to continued activity across mining, energy processing, power generation and construction-related supply chains.
The combination is relevant for industrial demand. Higher cement production indicates sustained consumption by construction and infrastructure projects, while rising electricity output reflects broader power requirements. Growth in coal and iron ore production also increases the availability of key raw materials used by power producers and metal-intensive industries.
The reported data do not provide individual growth rates or production volumes for these expanding sectors. They therefore establish the direction of output rather than the size of the change in each commodity market. For traders and processors, the next releases will be important in determining whether July’s gains translate into sustained domestic supply growth.
Oil, gas and fertilizer output decline
The expansion was not uniform. Crude oil, natural gas and fertilizer production declined in July, offsetting part of the gains elsewhere. The divergence suggests that stronger construction-material and power-sector activity did not extend to every component of India’s industrial base.
The government has also revised the framework used to measure the core industries. Data released from June 2026 use 2022-23 as the base year instead of 2011-12. Iron ore has been added to the index, increasing the number of covered sectors to nine. The updated base is intended to align the calculation more closely with the current structure of the economy.
Because the index now has a new base year and an additional sector, comparisons require attention to the revised methodology. Still, the reported acceleration from 3.2% in July 2025 to 5.4% in July 2026, together with 4.3% growth in April-July, indicates firmer core-industry activity. The split between expanding minerals and construction inputs and declining oil, gas and fertilizers will remain central for producers, processors and commodity-market participants.