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India's Core Sector Growth Slows in July
20 Aug
Summary
- India's core sector growth slowed to 5.4% in July from 6% in June.
- Six of nine core sectors recorded growth, with key exceptions.
- Refinery products grew 2.7% in July after three months of contraction.
India's Index of Core Industries (ICI) experienced a slowdown in July, with growth decelerating to 5.4% from an upwardly revised 6% in June. This revised figure is based on a new series with a 2022-23 base year, expanding the basket to nine sectors from eight with the inclusion of iron ore.
During July, six out of the nine core sectors registered positive growth. These included iron ore, electricity, cement, steel, refinery products, and coal. However, natural gas, crude oil, and fertilizers saw contractions. A significant development was the return of refinery products to growth territory, posting a 2.7% increase after three months of negative performance.
Electricity, the sector with the highest weight, saw its growth rate fall to 9% from 11.4% in the previous month. Iron ore, a major driver, also saw its growth rate more than halve to 29.5% from 44.5%. Cumulatively, the index grew 4.3% from April to July 2026, a notable increase compared to 1.5% in the same period last year.
