Context:

• According to the Ministry of Commerce and Industry, the combined index of eight core industries in India recorded a 0.4% decline in March 2026 compared to the previous year.

Key Points:

• This is the lowest level in the last 19 months.
• The final growth rate of the core industries index for February 2026 stood at 2.8%.
• During April–March FY 2025–26, the cumulative growth rate of ICI stood at 2.6% (provisional) compared to the same period last year.

Eight Core Industries:

• Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity
• Production declined in four sectors, while four sectors recorded growth

Negative Performing Sectors:

• Fertilizers: Sharpest decline of 24.6%; impacted by gas supply disruptions due to West Asia tensions (especially Iran–Israel conflict).
• Crude Oil: Output declined by 5.7%.
• Coal: Production fell by 4.0%.
• Electricity: Marginal decline of 0.5%.

Positive Performing Sectors:

• Natural Gas: Highest growth of 6.4%.
• Cement: Increased by 4.0%.
• Steel: Grew by 2.2%.
• Refinery Products: Marginal growth of 0.1%.

• Impact on IIP: The eight core industries account for 40.27% weight in the Index of Industrial Production (IIP). Due to the decline in the core sector, IIP growth for March is estimated to slow down to 1.0–2.0%.
• Annual Growth (FY 2025–26): The cumulative growth rate stood at 2.6%, significantly lower than 4.5% in FY 2024–25.
• External Factors: Geopolitical tensions (especially in West Asia) have affected energy prices and input availability, putting pressure on sectors like fertilizers.
• Index of Industrial Production (IIP):
• A composite index that measures changes in the volume of production of industrial products over a period, indicating growth or decline in the industrial sector.
• Published by: National Statistical Office under the Ministry of Statistics and Programme Implementation on a monthly basis.
• Base Year: Currently 2011–12.