India’s Core Infrastructure Output Grows 4.8% in August
Strong cement and electricity production offset declines in coal, crude oil, natural gas and fertilisers
India’s core infrastructure output grew 4.8% year-on-year in August 2026, supported by strong growth in cement and electricity production even as several energy-related sectors recorded contractions, according to government data released on Monday. Growth moderated slightly from the revised 5% recorded in July. (Reuters)
The latest numbers are the third release under India's revised core-sector series, which uses 2022-23 as the base year. The updated framework expanded the core infrastructure basket from eight to nine industries with the inclusion of iron ore. (Reuters)
Cement was one of the strongest performers, with production increasing 12.5% year-on-year in August. Electricity generation jumped 11.6%, while iron ore production increased 5.5%. Steel output grew 3.4%, while refinery products recorded growth of 2.6%. (Reuters)
KEY HIGHLIGHT
India’s core infrastructure output: +4.8% YoY in August 2026
Cement: +12.5% | Electricity: +11.6%
However, weakness remained visible across important energy and agricultural-input sectors. Coal production declined 3.8%, crude oil output fell 3.6%, natural gas production contracted 4.9%, while fertiliser output dropped sharply by 12.4%. (Reuters)
The broader trend remained stronger on a cumulative basis. Core infrastructure output during April-August 2026 grew 4.3% year-on-year, compared with growth of 2.4% during the corresponding period a year earlier. (Reuters)
The core sectors are closely watched because they account for roughly 40% of India's Index of Industrial Production (IIP) and provide an early indication of industrial activity. Business Standard reported that ICRA expects August IIP growth of 5-6%, while Bank of Baroda estimates a range of 6-6.5%. (Business Standard)
The August numbers therefore present a mixed picture: construction-related activity and power generation remained strong, while conventional energy production and fertilisers continued to face pressure.
SECTOR SNAPSHOT
Growing: Cement, Electricity, Iron Ore, Steel, Refinery Products
Contracting: Coal, Crude Oil, Natural Gas, Fertilisers