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India's core sector output contracts in March
20 Apr 2026

India's core sector output contracted by 0.4% year-on-year (YoY) in March, the first decline in five months.

The contraction was mainly due to a fall in production across four of the eight sectors, including coal, crude oil, fertilizers, and electricity.

This is a sharp contrast from the 2.8% growth recorded in February this year.

Fertilizer production declines steeply
Sector-wise performance

Fertilizer production witnessed the steepest decline, contracting by 24.6% in March.

Coal output fell by 4%, crude oil production declined by 5.7%, and electricity generation slipped by 0.5%.

However, there were some gains too: natural gas output rose sharply by 6.4%, cement production increased by 4%, steel output grew marginally at 2.2%, while refinery products saw a slight uptick of just about 0.1%.

Core sectors account for over 40% weightage of IIP
Industrial impact

The eight core industries: coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity, account for 40.27% of the weight of the Index of Industrial Production (IIP).

This makes them a key indicator of industrial activity in India.

For the entire financial year 2025-26 (FY26), cumulative growth in these sectors slowed to 2.6%, down from 4.5% in FY25.

How did these sectors perform during FY26?
Annual growth

During FY26, steel production rose by an impressive 9.1% and cement output increased by a healthy 8.6%.

Electricity generation also saw some growth at 0.9%.

However, crude oil and natural gas output both fell by 2.8%, while coal production slipped marginally at 0.5%.

Refinery products and fertilizers also saw a slight dip of just about 0.1% each during this period.