NEW DELHI — India’s core sector growth moderated to 2.3 per cent in February 2026 on a year-on-year basis, according to official data released on Friday. The growth was primarily driven by solid expansions in cement, steel, fertilisers, coal, and electricity production.
The Index of Eight Core Industries (ICI), which serves as a key gauge for the performance of critical infrastructure sectors, saw a deceleration from the 4.7 per cent growth recorded in January 2026. Cumulatively, for the April–February period of the current financial year, the growth stands at a provisional 2.9 per cent.
Notably, these eight core industries carry significant economic weight, collectively accounting for 40.27 per cent of the broader Index of Industrial Production (IIP).
February 2026 Sectoral Performance
The monthly data revealed a mixed bag of robust expansions in infrastructure materials offset by contractions in the energy extraction and refinement sectors. Cement production led the pack with the highest growth rate, while crude oil and natural gas faced notable declines.
| Core Industry | Feb 2026 YoY Growth | Cumulative (Apr-Feb) Growth |
| Cement | +9.3% | +9.2% |
| Steel | +7.2% | +9.7% |
| Fertilisers | +3.4% | +2.0% |
| Coal | +2.3% | Not specified |
| Electricity | +0.5% | +0.9% |
| Refinery Products | -1.0% | -0.1% |
| Natural Gas | -5.0% | -3.5% |
| Crude Oil | -5.2% | -2.5% |
Cumulative Trends and Industry Context
On a cumulative basis throughout the financial year (April to February), the heavy infrastructure pillars of steel and cement have demonstrated strong resilience, rising by 9.7 per cent and 9.2 per cent, respectively.
Conversely, the energy sector has struggled consistently throughout the year. Crude oil and natural gas outputs have declined by 2.5 per cent and 3.5 per cent respectively during the same 11-month period, pointing to ongoing challenges in domestic extraction, while refinery products recorded a marginal overall dip of 0.1 per cent.
