New Delhi: India’s core sector growth remained modest in February, with the Index of Eight Core Industries (ICI) rising 2.3% year-on-year, reflecting a mixed performance across key segments of the economy.
According to official data released by the Ministry of Commerce and Industry, the expansion was supported by strong growth in steel and cement production, which grew by 7.2% and 9.3% respectively. Fertilizers, coal and electricity also recorded positive growth, indicating steady activity in construction-linked and energy-consuming sectors. However, the overall pace of growth was weighed down by declines in crude oil and natural gas output, which fell by 5.2% and 5.0% respectively, along with a 1% contraction in petroleum refinery products.
The ICI, which tracks the performance of coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity, accounts for 40.27% of the weight in the Index of Industrial Production (IIP), making it a key indicator of industrial health.
Sequentially, the core sector showed some moderation compared to January, when the final growth rate was recorded at 4.7%. On a cumulative basis, the ICI grew 2.9% during April-February of FY2025-26, compared with the same period last year, suggesting a gradual but uneven recovery in industrial activity.
Sector-wise, coal output rose 2.3% year-on-year in February, while electricity generation saw a marginal increase of 0.5%. Fertilizer production grew 3.4%, reflecting stable agricultural demand. In contrast, the energy segment remained under pressure, with cumulative declines of 2.5% in crude oil and 3.5% in natural gas during the fiscal year so far. Petroleum refinery products also slipped slightly, posting a cumulative contraction of 0.1%.
Meanwhile, infrastructure-linked sectors continued to show resilience. Steel production registered a strong cumulative growth of 9.7% during April-February, while cement output increased 9.2%, highlighting sustained momentum in construction and capital expenditure.
Overall, the February data points to a divergence within the core sectors, where robust growth in infrastructure-related industries is offsetting weakness in the energy segment, keeping the headline growth figure in a moderate range.