India's Core Sector Growth Reaches 4.8% in August 2026, Led by Cement and Power

The Ministry of Commerce and Industry released the provisional estimates for the Index of Core Industries (ICI) for August 2026, revealing a year-on-year growth rate of 4.8 per cent. Although slightly lower than the revised 5.0 per cent expansion recorded in July 2026, the cumulative growth rate for the April-August period reached 4.3 per cent, significantly higher than the 2.4 per cent registered during the corresponding period of the previous fiscal year.

The expansion was largely propelled by strong performance in key infrastructure sectors. Cement production recorded a robust growth of 12.5 per cent, while electricity generation expanded by 11.6 per cent. Iron ore and steel output also showed healthy gains, growing by 5.5 per cent and 3.4 per cent respectively, while refinery products registered a modest 2.6 per cent growth. Together, iron ore, electricity, and cement remained the principal growth drivers of the core sector index.

However, the overall growth momentum was partially tempered by contractions in four major energy and agricultural input sectors. Coal output, natural gas, crude oil, and fertilizer production all experienced negative growth in August 2026. The core sector index measures the combined output of eight critical infrastructure industries and accounts for over 40 per cent of the total weight in the Index of Industrial Production (IIP). Analysts note that the continued strength in cement and power generation reflects sustained public infrastructure expenditure and rising industrial demand, laying a firm foundation for broader economic recovery.