Now Reading: India core sector growth slows to 5.4% in July
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India core sector growth slows to 5.4% in July
India's core infrastructure output grew 5.4% in July 2026, easing from a revised 6% expansion in June, according to provisional government data. The revamped Index of Core Industries, now based on 2022-23,…
India's core infrastructure output grew 5.4% in July 2026, easing from a revised 6% expansion in June, according to provisional government data. The revamped Index of Core Industries, now based on 2022-23, includes nine sectors with iron ore as a new component.
Iron ore led with 29.5% growth, followed by cement at 13.1% and electricity at 9%. Coal output rose 7.6%, while steel and refinery products grew 2.9% and 2.7% respectively. However, natural gas, crude oil and fertiliser output declined during the month.
Between April and July, the index grew 4.3% cumulatively, up from 1.5% in the same period last year. The mixed performance indicates an uneven recovery across sectors, with mining and construction-related industries outperforming others.
Indian Opinion Analysis
The core sector accounts for about 40% of the Index of Industrial Production, so July's slowdown signals a possible moderation in broader factory output. The sharp divergence between iron ore's 29.5% surge and the contraction in natural gas and crude oil reflects structural demand shifts: mining benefits from infrastructure-linked demand, while oil and gas face global price and policy headwinds. The base year revision to 2022-23 may also be making year-on-year comparisons more favourable for recent months. The next IIP data, due in mid-September, will show whether the core sector slowdown is a blip or the start of a trend.
Source: timesnownews.com
This story was synthesised by AI from the source linked above.
