Context:
The Index of Eight Core Industries grew only 1.7% in April 2026, indicating weakness in key infrastructure sectors. The slowdown is notable because several core sectors such as crude oil, natural gas and fertilisers contracted, raising concerns about broader economic demand.
- Index of Eight Core Industries (ICI) measures output growth in eight major infrastructure sectors of the Indian economy.
- The eight core industries are coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity.
- These sectors have a major weight in the Index of Industrial Production (IIP), so weak core sector growth can affect overall industrial performance.
- Steel, cement and electricity are closely linked to construction, infrastructure and government capital expenditure.
- Crude oil and natural gas contraction may indicate lower production, lower demand, import dependence or policy-related constraints.
- Fertiliser output is important for agriculture, especially before the sowing season.
- Weak fuel consumption can reflect reduced industrial, commercial and transport activity.
- Other indicators such as PMI, GST collections and fuel consumption are also used to assess economic momentum.
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