India's Core Industries Contract Sharply in March

India's foundational industries faced a significant setback in March 2026, with the Index of Eight Core Industries reporting a 0.4 percent contraction. This downturn marks a reversal from the previous month's positive momentum, largely driven by substantial declines in critical sectors. Fertiliser production experienced the most severe drop, plummeting by 24.6 percent year-on-year.

Further contributing to the contraction, coal output decreased by 4.0 percent and crude oil production fell by 5.7 percent. While natural gas production rose by 6.4 percent and steel and cement saw modest increases, these gains were insufficient to offset the widespread declines. Electricity generation also contracted slightly by 0.5 percent.