India’s core sector output slips 0.4% in March, FY26 growth at 2.6%

India’s core sector output contracted 0.4% in March after expanding the previous month, weighed down by sharp declines in fertiliser, crude oil and coal production, government data showed on Monday.

The index of eight core industries, which accounts for about 40% of the country’s industrial output, had expanded 2.8% in February.

For the full financial year 2025-26, core sector growth slowed to 2.6%, according to provisional data released by the commerce and industry ministry.

The March decline was led by a steep 24.6% contraction in fertiliser output, while crude oil production dropped 5.7% and coal output fell 4.0%.

Electricity generation also edged lower by 0.5%.

Among sectors showing growth, natural gas output rose 6.4%, steel production increased 2.2%, and cement output grew 4.0% during the month.

Refinery products output was largely flat, rising just 0.1%.

On a cumulative basis, steel and cement were the main drivers of growth during the fiscal year, expanding 9.1% and 8.6%, respectively, while crude oil and natural gas output remained under pressure.

The subdued core sector performance in March points to uneven momentum in India’s industrial activity at the end of the fiscal year amid West Asia conflict that disrupted global energy supplies.