India’s Core Sector Output Grows 0.5% in May, Steel, Cement and Power Lead Expansion

India’s eight core industries recorded a 0.5% year-on-year growth in May 2026 , supported by strong performances in steel, cement and electricity generation , according to data released by the Ministry of Commerce and Industry on Monday.

The Index of Eight Core Industries (ICI) , which tracks production trends across coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity, stood at 171.0 in May 2026 compared with 170.2 in the same month last year. These eight sectors account for 40.27% of the total weight in the Index of Industrial Production (IIP) .

Among the key growth drivers, cement production increased 8.4% , reflecting continued momentum in construction and infrastructure activity. Electricity generation rose 8.7% , while steel output expanded 5% during the month, indicating sustained demand from infrastructure and manufacturing sectors.

However, the overall growth rate was impacted by declines in several energy-related segments. Coal production fell 9.3% , while crude oil output declined 4.6% and natural gas production dropped 4.9% compared with May 2025. Petroleum refinery production also contracted by 8.7% , adding pressure on the overall index. Fertilizer production registered a marginal decline of 0.9%.

The cumulative growth of the core sector during April-May 2026-27 stood at 1.1% , according to provisional figures. The final growth rate for April 2026 was revised to 1.8% .

The latest data highlights a mixed industrial trend, with infrastructure-linked sectors providing support to economic activity while weakness in energy and petroleum segments remained a concern. The government said the May figures are provisional and will be revised based on updated data from source agencies.