Home / Business and Economy / India Core Sector Shrinks: Output Falls 0.4% in March
India Core Sector Shrinks: Output Falls 0.4% in March
20 Apr
Summary
- India's core sector output contracted 0.4% in March, marking a downturn.
- Key energy sectors like crude oil and coal production saw significant declines.
- Steel and cement output showed resilience, with positive growth rates.
India's core sector experienced a contraction of 0.4% in March, reflecting a slowdown in the output of eight key infrastructure industries. This marks a dip into negative territory at the end of the financial year 2025-26.
The decline was predominantly influenced by energy and input-heavy sectors. Crude oil production fell by 5.7%, coal output decreased by 4%, and electricity generation saw a 0.5% drop. Fertiliser production registered the steepest decline, plummeting by 24.6% during the month.
Despite these challenges, certain segments provided support. Steel output grew by 2.2%, and cement production increased by 4%, indicating sustained demand in construction and infrastructure. Natural gas output also rose by 6.4%.
For the full financial year 2025-26, the core sector recorded a growth of 2.6%, suggesting moderate overall expansion. However, the March data highlights uneven growth patterns within the economy.
