EconomyMonday, 31 August 2026·The Hindu - Economy
India core sector growth slows to 5.4% in July 2026; cement and electricity stay strong
Core sector growth slowed to 5.4% in July 2026, with fertilisers, steel and natural gas showing weakness.
Key highlights
Direct fact
On 20 August 2026, the Ministry of Commerce and Industry released data showing that India’s Index of Core Industries (ICE) growth slowed to 5.4% in July 2026 from 6% in June 2026.
Key specifics
- Core sector growth was 5.4% in July 2026, compared with 6% in June 2026.
- Fertilisers contracted 8% in July 2026, after a 3.3% contraction in June.
- Steel growth slowed to 2.9% in July 2026, the lowest in 14 months.
- Natural gas contracted 3.7% and crude oil contracted 5.3% in July 2026.
- Cement grew 13.1% and electricity grew 9% in July 2026, making them the bright spots in the ICE data.
Exam lens
Economy MCQ focus: Index of Core Industries, Ministry of Commerce and Industry, 20 August 2026, 5.4%, fertilisers -8%, cement 13.1%. TNPSC may ask which sectors are included in core industries and which ones contracted in July 2026.