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Core Sector Growth Moderates To 2.3% In February 2026: Govt Data
(MENAFN- KNN India) ** New Delhi, Mar 20 (KNN)** India’s core sector growth moderated to 2.3 per cent (provisional) year-on-year (YoY) in February 2026, down from a revised 4.7 per cent in January, according to Commerce & Industry Ministry data released on Friday.
The combined Index of Eight Core Industries (ICI), which tracks activity across key infrastructure sectors, was supported by higher output in cement, steel, fertilisers, coal, and electricity during the month. The index accounts for 40.27 per cent of the Index of Industrial Production (IIP).
On a cumulative basis, the core sector expanded by 2.9 per cent during April–February of FY 2025–26 (provisional), compared to the corresponding period last year.
** Sector-wise Performance**
Among the major sectors, steel and cement recorded strong growth in February, reflecting continued momentum in construction and infrastructure-related activity.
Steel output rose by 7.2 per cent YoY, with cumulative growth of 9.7 per cent during April–February, while cement production increased by 9.3 per cent in February, with cumulative growth at 9.2 per cent.
Fertilisers also registered a 3.4 per cent increase, taking cumulative growth to 2.0 per cent, while coal production grew by 2.3 per cent, although its cumulative output remained unchanged over the period.
In contrast, energy-related sectors recorded a contraction. Crude oil production declined by 5.2 per cent in February, with cumulative output down 2.5 per cent, while natural gas output fell by 5.0 per cent, with a cumulative decline of 3.5 per cent.
Petroleum refinery products also saw a marginal contraction of 1.0 per cent, with cumulative output largely flat at -0.1 per cent.
** Outlook**
The February data reflects a mixed trend in core industries, with robust growth in construction-linked sectors offset by continued weakness in the oil and gas segment. The overall moderation in growth suggests uneven industrial momentum heading into the final quarter of the financial year.
** (KNN Bureau)**
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