Core sector growth eases to 5.4% in July from 6% in June; iron ore, cement lead

India’s core infrastructure sector growth moderated to 5.4% year-on-year in July 2026, compared with 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 account for 40.27% of the weight of items included in the Index of Industrial Production (IIP), recorded stronger cumulative growth of 4.3% during April-July 2026, compared with 1.5% in the corresponding period last year.

Iron ore emerged as the fastest-growing segment in July, expanding 29.5% year-on-year. Cement production rose 13.1%, while electricity generation increased 9%. Coal output grew 7.6%, followed by steel at 2.9% and refinery products at 2.7%.

However, three sectors contracted during the month. Natural gas, crude oil and fertilisers recorded negative year-on-year growth in July.

The government said iron ore, electricity and cement have been the major drivers of the overall growth in the core industries in recent months.

The latest data also revised upward the final core sector index for June. The June index was revised to 120.7 from the earlier provisional estimate of 119.6. Consequently, June’s year-on-year growth rate was revised sharply higher to 6%, from the provisional estimate of 5%.

Core sector performance is closely watched as it provides an early indicator of industrial activity and feeds into the broader Index of Industrial Production.