India's Core Industries Register 2.3% Growth in February 2026
The combined Index of Eight Core Industries (ICI) in India posted a provisional growth of 2.3 per cent in February 2026 compared to the same month in the previous year, according to data released by the Ministry of Commerce & Industry. This indicator, which holds a significant weight of 40.27 per cent in the Index of Industrial Production (IIP), reflects mixed performance across key sectors of the economy.
Sectoral Performance Highlights
The production data for February 2026 reveals a varied landscape. Cement and steel emerged as top performers, with cement output surging by 9.3 per cent and steel production increasing by 7.2 per cent year-on-year. Other sectors showing positive growth included fertilizers (up 3.4 per cent), coal (up 2.3 per cent), and electricity (up 0.5 per cent).
However, not all industries fared well. Crude oil production declined by 5.2 per cent, while natural gas output fell by 5.0 per cent. Petroleum refinery products also saw a slight decrease of 1.0 per cent during this period.
Cumulative Growth and Previous Trends
The cumulative growth rate for the ICI from April 2025 to February 2026 stands at 2.9 per cent (provisional), indicating a steady but moderate expansion over the fiscal year. This follows a higher growth rate of 4.7 per cent recorded in January 2026, as per the final figures released by the ministry.
Detailed cumulative indices show robust performances in steel and cement, with steel cumulative index up 9.7 per cent and cement up 9.2 per cent. In contrast, crude oil and natural gas cumulative indices declined by 2.5 per cent and 3.5 per cent, respectively, highlighting ongoing challenges in these energy sectors.
Implications for Industrial Production
The eight core industries—coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity—are critical barometers of India's industrial health. Their combined growth, albeit modest, suggests resilience in infrastructure and manufacturing activities, driven by strong demand in construction and allied sectors. The declines in oil and gas, however, point to supply-side constraints or reduced extraction efforts that may require policy attention.
This data underscores the importance of monitoring these core sectors to gauge broader economic trends and inform strategic decisions in trade and industrial policy.
