Growth in the infrastructure sectors’ output inched up to 1.7% year-on-year in April, from 1.2% in March, due to positive growth in the cement, electricity and steel sectors, according to data released by the Ministry of Commerce and Industry on Wednesday. The March print was revised from -0.4% reported earlier.
The cement and steel sectors recorded growth of 9.4% and 6.2%, respectively, indicating a pickup in construction activity. Electricity generation also grew at a three-month high of 4.1% in April.
As many as five of the eight sectors registered a contraction in output during the month, barring steel, cement, and electricity generation, suggesting that economic activity in some sectors was impacted by the West Asia crisis. In April 2025, the core sector expanded by 1% y-o-y.
The crude oil sector contracted for the eighth consecutive month, falling to 3.9% y-o-y in April. The natural gas sector also recorded a contraction of 4.3%. The fertiliser sector contracted 8.6%, though improved from 24.6% contraction in March. Coal and refinery products also slumped, contracting 8.7% and 0.5%, respectively.
Rahul Agrawal, senior economist at Icra, said the growth in core sector output remained quite subdued despite a favourable base. “The uptick was largely driven by electricity generation, and cement, as well as a narrower drag from fertilisers. This is likely to reflect in tepid IIP growth in April 2026, for which data will be released on the much-awaited new base,” he said. The cumulative growth rate of the ICI for FY26 stands at 2.7% y-o-y.
India Ratings said the improved core sector performance is expected to increase upcoming industrial production growth to around 5% (March 2026: 4.1%). The agency expects core sector recovery to continue, forecasting around 3% growth in May due to a low base and likely improved fertiliser production.
The Index of Eight Core Industries measures the combined and individual performance of production of eight sectors — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity. The eight core industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).