Key Details
The August release presents provisional output growth across the nine industries covered by the revised 2022–23-base Index of Core Industries (ICI).
Indicator | Latest Position |
|---|---|
Overall ICI growth, August 2026 | 4.8% year-on-year |
Overall index | 119.2, against 113.7 in August 2025 |
Final growth, July 2026 | 5.0%, revised from the provisional 5.4% |
April–August 2026 growth | 4.3% |
April–August 2025 growth | 2.4% |
Sectors recording growth in August | 5 of 9 |
Sectors recording contraction | 4 of 9 |
August performance varied considerably across industries:
Cement: +12.5%
Electricity: +11.6%
Iron ore: +5.5%
Steel: +3.4%
Refinery products: +2.6%
Coal: −3.8%
Natural gas: −4.9%
Crude oil: −3.6%
Fertilisers: −12.4%
All August and April–August 2026 figures are provisional.
Growth Held Near 5%, but the Sectoral Picture Was Uneven
The Index of Core Industries increased 4.8% in August 2026 compared with the same month a year earlier. This was marginally below the final 5% growth recorded in July, indicating that aggregate momentum remained broadly steady.
The headline figure conceals a pronounced split. Electricity and construction-related materials expanded strongly, while domestic fuel extraction and fertiliser production contracted.
The index measures changes in production volumes rather than prices, revenues or profitability. It should therefore be read as an early indicator of physical industrial activity, not as a direct measure of industrial value added or GDP.
Electricity and Construction Materials Supported Expansion
Cement recorded the fastest August growth at 12.5%, while electricity output increased 11.6%. Iron ore and steel grew 5.5% and 3.4%, respectively.
The pattern points to continued activity in construction, infrastructure and power demand. Electricity is particularly important to the overall index because it carries a weight of 30.932%, the largest among the nine industries. Steel has a weight of 17.584%, while cement and iron ore account for 4.410% and 4.905%, respectively.
Refinery-product output grew more moderately at 2.6%, providing some support from the energy-processing segment.
Domestic Fuel and Fertiliser Output Contracted
Coal production declined 3.8%, natural gas 4.9% and crude oil 3.6% in August. Fertiliser output recorded the steepest contraction, at 12.4%.
The cumulative figures show that these were not confined to a single month. During April–August 2026:
Industry | Cumulative Growth |
|---|---|
Iron ore | +21.8% |
Cement | +10.3% |
Electricity | +9.6% |
Steel | +4.1% |
Refinery products | −1.4% |
Coal | −3.2% |
Natural gas | −4.4% |
Crude oil | −4.1% |
Fertilisers | −6.7% |
The broader industrial picture has therefore been sustained by power and infrastructure-linked production, even as several upstream energy industries remained below their year-earlier levels.
Cumulative Growth Improved Despite August Moderation
Overall ICI growth during April–August 2026 reached 4.3%, compared with 2.4% in the corresponding period of 2025.
This cumulative improvement is more informative than the small easing from July to August because monthly production can fluctuate with weather, maintenance schedules, mining conditions and the timing of demand.
The July estimate also illustrates the role of revisions. Its provisional growth rate of 5.4% was lowered to a final 5%, with the index revised from 121.2 to 120.8. August’s 4.8% figure may similarly change when final data become available.
What Is the Index of Core Industries?
The Index of Core Industries tracks monthly production across industries that supply essential inputs to the wider economy. The revised series, introduced in July 2026, uses 2022–23 as its base year and covers nine industries: coal, natural gas, crude oil, refinery products, fertilisers, steel, cement, electricity and iron ore.
Policy Relevance
The August figures present a two-speed core economy. Strong electricity, cement, iron ore and steel output indicates continuing momentum in infrastructure-linked activity. Persistent contraction in crude oil, natural gas and coal, however, points to weaker domestic production in several upstream energy segments.
For policymakers, the immediate issue is whether this divergence persists. Sustained infrastructure demand can support industrial activity, but its wider economic effect depends on reliable supplies of energy, raw materials and fertilisers. Weak domestic output in these areas can increase dependence on inventories or imports, although the ICI alone cannot determine whether that is occurring.
The revised index also changes the statistical baseline. Comparisons should use the 2022–23-base back series, rather than combining these figures with growth rates or weights from the discontinued 2011–12 series.
Follow the Full Statistical Release Here: Provisional Estimates of the Index of Core Industries for August 2026