India’s core sector growth accelerates to five-month high in June

India's core sector industry output experienced its fastest growth in five months during June 2026, reaching a 5% increase according to data released by the Ministry of Industry and Commerce.

This latest figure represents a significant uptick, with the revised Index of Core Sector Industries (ICI) showing a 5% growth in June, the highest since January 2026 when it recorded 5.2%. The ICI data is now based on a revised series with a 2022-23 base year, incorporating nine industries instead of eight, and adding iron ore to the list. This revised index now accounts for 33% of the broader Index of Industrial Production (IIP), down from 40% in the previous series.

The West Asia conflict had previously impacted fertilizer production, a key component of the ICI. However, the data suggests this shock has largely subsided, although full recovery is still pending. The fertilizer production index, under the new series, has shown a steady increase from April to June, rising to 102.3 in June. Despite this improvement, year-on-year comparisons still indicate a contraction, though the June contraction of 3.3% is attributed more to a base effect than a sequential decline in production.

Other sectors within the core industry also present a mixed picture. Refinery products saw a reduced contraction of 4.7% in June, an improvement from May's 8.2% contraction. However, the natural gas and crude oil sectors, which are crucial energy commodities, continued to contract in June, recording decreases of 7.4% and 4.2% respectively. The contraction in natural gas production was the most significant observed in the new series.