India's Core Infrastructure Growth Eases to 2.3% in February 2026
Growth in India's eight core infrastructure industries moderated to 2.3 per cent in February 2026, a notable decline from the 3.4 per cent expansion recorded in the same month last year. This slowdown reflects persistent weakness in energy-linked segments, even as output expanded robustly in several manufacturing-oriented sectors, according to official data released by the Ministry of Commerce and Industry.
Key Sectoral Performance Highlights
The combined Index of Eight Core Industries (ICI), which accounts for 40.27 per cent of the weight in the Index of Industrial Production (IIP), showed a provisional year-on-year increase of 2.3 per cent. During the month, production declines were observed in crude oil, natural gas, and petroleum refinery products, which tempered the overall growth. In contrast, cement, steel, fertilisers, coal, and electricity recorded positive growth, indicating a mixed performance across the core sector basket.
Detailed Sectoral Analysis
Energy Sectors Face Contraction:
- Crude oil output, with an 8.98 per cent weight, declined by 5.2 per cent year-on-year in February, and its cumulative index contracted by 2.5 per cent over the April–February period of FY26.
- Natural gas production, carrying a 6.88 per cent weight, fell by 5.0 per cent during the month, with a cumulative slip of 3.5 per cent compared to the year-ago period.
- Petroleum refinery products, which hold the highest weight at 28.04 per cent, declined by 1.0 per cent in February and remained marginally lower by 0.1 per cent cumulatively during the first eleven months of the fiscal year.
Growth Drivers in Manufacturing and Construction:
- Steel production, with a 17.92 per cent weight, posted a strong 7.2 per cent increase in February, while cumulative growth stood at an impressive 9.7 per cent.
- Cement output, with a 5.37 per cent weight, expanded by 9.3 per cent during the month and recorded 9.2 per cent growth cumulatively over the fiscal period under review.
- Fertiliser output, with a 2.63 per cent weight, rose by 3.4 per cent year-on-year in February and recorded 2.0 per cent cumulative growth during April–February.
- Electricity generation, with a 19.85 per cent weight, increased by 0.5 per cent year-on-year in February and registered 0.9 per cent cumulative growth during April–February.
- Coal production, carrying a 10.33 per cent weight, increased by 2.3 per cent in February over the same month last year, though its cumulative index remained unchanged at 185.8 during April–February FY26.
Cumulative Growth Trends and Broader Implications
During the April–February period of FY26, cumulative growth in core infrastructure output stood at 2.9 per cent, compared with 4.4 per cent in the corresponding period of the previous financial year. This indicates a broader slowdown in momentum, as highlighted by the ministry's release. The final growth rate of the Index of Eight Core Industries for January 2026 was revised to 4.7 per cent, underscoring the volatility in monthly performance.
The data suggests that while construction-linked and industrial segments continue to provide support to the economy, the contraction in energy-related sectors remains a key drag on overall core infrastructure output. This mixed performance could have implications for industrial production and economic growth in the coming months, as energy availability and pricing pressures persist.
Overall, the February 2026 core infrastructure data paints a picture of an economy grappling with sectoral imbalances, where robust manufacturing gains are being offset by energy sector challenges, necessitating close monitoring by policymakers and industry stakeholders.
