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India’s nine core infrastructure sectors recorded a five-month high growth of 5 per cent in June, supported by robust production of cement, electricity and iron ore. The government has also introduced a revised index with 2022-23 as the new base year and added iron ore as the ninth core sector. While output of crude oil, natural gas, refinery products and fertilisers declined, higher production in construction-related sectors helped improve overall growth. The April-June performance also showed a stronger expansion compared to the corresponding period last year.
India’s nine core infrastructure sectors recorded a five-month high growth of 5 per cent in June, driven by higher production of cement, electricity and iron ore, according to official data released earlier this week.
The growth marks a significant improvement from 3.2 per cent recorded in May and 1.1 per cent in the corresponding month last year, reflecting stronger activity across key infrastructure-linked industries.
The latest data has been released under a revised index with the base year updated to 2022-23, replacing the earlier 2011-12 series. As part of the revision, the government has included iron ore in the index, increasing the number of core infrastructure sectors from eight to nine. The revised series is aimed at providing a more current representation of the country's industrial and infrastructure performance.
Despite the overall improvement, production declined in several sectors during the month. Output of crude oil, natural gas, refinery products and fertilisers registered a contraction, indicating continued pressure in parts of the energy and industrial value chain.
In contrast, cement and electricity production grew by 9.8 per cent each, making them the key contributors to the month's performance. Cement output is widely considered an indicator of construction and infrastructure activity, while higher electricity generation reflects increased demand from industries, businesses and households.
Iron ore, which has been included in the revised core sector index for the first time, recorded a sharp 43.9 per cent increase in production during the month. The strong growth highlights rising mining activity and increased demand from steel manufacturers and infrastructure projects.
For the first quarter of the current financial year (April-June 2026-27), the nine core infrastructure sectors expanded by 3.6 per cent, compared with a growth of 1 per cent during the same period of the previous financial year.
The Index of Core Industries tracks the performance of sectors that form the backbone of the country's industrial economy. These sectors have a significant weight in the Index of Industrial Production (IIP) and include coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, electricity and, under the revised series, iron ore. Their performance is closely monitored as an early indicator of broader industrial and economic activity.
Source PTI
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