India’s eight core infrastructure industries saw a 0.4% decline in their combined index in March compared to the previous year, according to data from the Commerce and Industry Ministry. While natural gas, steel, and cement production increased, fertilisers, crude oil, coal, and electricity output experienced negative growth during the month.
The final growth rate for the eight core industries in February was 2.8%. The cumulative growth rate for the combined index from April to March 2025-26 stands at 2.6% compared to the same period last year. Steel production rose by 2.2% in March, while the cement sector grew by 4% due to sustained demand from significant government investments in infrastructure projects.
In March, natural gas production surged by 6.4% as output was boosted following disruptions in gas supplies from the Middle East due to the Iran war. Additionally, the government has been promoting the switch to natural gas from LPG due to supply disruptions caused by the closure of the Strait of Hormuz. Petroleum products production also saw a slight increase of 0.1% in March, with the government maintaining normal levels of petrol, diesel, and jet fuel supplies.
Coal production dropped by 4% in March, while electricity generation decreased by 0.5%. Crude oil production fell by 5.7%, and fertiliser production declined significantly by 24.6% in March compared to the previous year. The Index of Eight Core Industries (ICI) monitors the performance of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity. These industries make up 40.27% of the items in the Index of Industrial Production (IIP) and are indicative of the overall industrial growth in the economy.
