The Index of Eight Core Industries (ICI) for February 2026, shows a provisional growth of 2.3% compared to the same month in the previous year. The ICI, which comprises 40.27% of the weight of items in the Index of Industrial Production (IIP), saw positive momentum in Cement (9.3%), Steel (7.2%), and Fertilizers (3.4%). However, the overall index was tempered by declines in Crude Oil (-5.2%), Natural Gas (-5.0%), and Petroleum Refinery Products (-1.0%). The cumulative growth rate for the financial year (April to February 2025-26) stands at 2.9%, reflecting a steady but moderate expansion in India's industrial foundation.
Sector-Wise Performance (February 2026)
Infrastructure Drivers: Cement production grew by 9.3%, supported by continued demand in housing and urban infrastructure. Steel followed with a robust 7.2% increase.
Energy & Mining: Coal production increased by 2.3%, while Electricity generation saw a marginal rise of 0.5%.
Agriculture Support: Fertilizer production recorded a 3.4% growth, contributing to its cumulative index increase of 2.0% for the year.
Extractives Slump: Crude Oil and Natural Gas continued their downward trajectory, declining by 5.2% and 5.0% respectively, indicating ongoing challenges in domestic extraction.
Refining: Petroleum Refinery Products, the heaviest weight in the index (28.04%), saw a slight contraction of 1.0%.
What is the "Index of Eight Core Industries (ICI)"? The Index of Eight Core Industries (ICI) is a monthly production index that measures the collective and individual performance of eight critical sectors: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilisers, Steel, Cement, and Electricity. It plays a role as a lead indicator for the broader Index of Industrial Production (IIP), as these "core" industries represent the essential inputs for almost all other industrial activities. The index is supported by the goal of providing a high-frequency signal of the economy's industrial health and capital expenditure (Capex) trends. By tracking growth across sectors with varying weights—such as Petroleum Refinery Products (28.04%) versus Fertilisers (2.63%)—the ICI reflects growth in the government's ability to monitor structural shifts in the industrial landscape.
Policy Relevance: Analyzing Industrial Resilience
Scaling Infrastructure Capex: The strong growth in Cement (9.3%) and Steel (7.2%) reflects growth in the real-world execution of the government's ₹12.2 lakh crore capital expenditure push for FY2026-27.
Internalising Energy Security: The decline in Crude Oil and Natural Gas plays a role in emphasizing the need for India to accelerate its transition to renewables and green hydrogen to reduce import dependency.
Bypassing Fertilizer Import Reliance: The 3.4% growth in Fertilizers is supported by the need to ensure agricultural productivity even as rural economic conditions show signs of weakening growth momentum.
Supporting "Viksit Bharat" Goals: Maintaining a cumulative core growth of 2.9% contributes to the long-term industrial foundation required for a $30 trillion economy by 2047.
Leveraging AI for Reporting: Real-time analysis of ICI data through the e-Sankhyiki portal can now allow "Agentic AI" to mechanically correlate core sector output with transport and logistics demand.
Follow the Full Data Here: Index of Eight Core Industries for February 2026 - 20 March 2026
