India’s eight core infrastructure sectors grew by 4 per cent in January 2026, easing from a revised 4.7 per cent in December, according to government data released on Friday.
The moderation comes after December’s stronger print, though January’s performance was supported by robust output in steel and cement.
The combined Index of Eight Core Industries (ICI) measures the production of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, and accounts for 40.27 per cent of the weight in the Index of Industrial Production (IIP).
On a cumulative basis, core sector growth stood at 2.8 per cent (provisional) during April–January 2025-26 compared with the corresponding period last year.
Construction-linked sectors drive growth
Steel production rose 9.9 per cent year-on-year in January, while cement output expanded 10.7 per cent, indicating sustained momentum in construction and infrastructure activity.
Electricity generation increased 3.8 per cent and fertiliser production grew 3.7 per cent during the month. Coal output also rose 3.1 per cent compared with January 2025.
During April–January 2025-26, steel production increased 9.8 per cent, cement output rose 9.1 per cent, fertiliser production grew 1.9 per cent, and electricity generation edged up 0.8 per cent.
Oil and gas remain under pressure
The overall growth was weighed down by continued contraction in hydrocarbons. Crude oil production declined 5.8 per cent in January from a year ago, while natural gas output fell 5.0 per cent.For the April–January period, crude oil production contracted 2.1 per cent and natural gas output dropped 3.4 per cent.
Petroleum refinery products output remained unchanged in January at an index level of 147.2 (provisional) compared with a year earlier. Cumulatively, refinery production rose marginally by 0.1 per cent during April–January.
Coal production, despite posting a 3.1 per cent increase in January, recorded a marginal cumulative decline of 0.3 per cent during the financial year so far.
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