India’s Core Sector Growth Slows to 0.5% in May as Energy Output Falls

The Index of Eight Core Industries (ICI) rose 0.5% in May 2026 compared with May 2025, according to government data. These eight sectors account for 40.27% of the Index of Industrial Production (IIP). The final growth rate for April 2026 was revised to 1.8%, while cumulative growth for April-May FY27 stood at 1.1%.

Among the sectors, Steel production increased 5%, Cement rose 8.4%, and Electricity generation grew 8.7% in May 2026 compared with a year earlier. These were the main sectors supporting overall growth.

On the downside, Coal production fell 9.3%, Crude Oil declined 4.6%, Natural Gas dropped 4.9%, and Petroleum Refinery Products fell 8.7% year-on-year in May 2026.

Fertilizer production decreased 0.9% in May 2026 compared with May 2025, continuing the weakness seen across several energy-related sectors.

During April-May FY27, cumulative output growth was Steel +5.2%, Cement +8.3%, and Electricity +7.1%. Meanwhile, Coal (-9.1%), Crude Oil (-4.2%), Natural Gas (-4.5%), Refinery Products (-4.7%), and Fertilizers (-4.5%) recorded declines.

The May 2026 data is provisional and may be revised later. The next Core Industries data release for June 2026 is scheduled for 20 July 2026.