India’s core sector output grows 4.8% in August, led by cement and electricity

India’s core infrastructure output grew 4.8% year-on-year in August, slightly slowing from 5% growth in July, according to government data released on Monday. The latest reading is the third under the revised Index of Core Industries (ICI) series, which uses 2022-23 as the base year. 

The revised series, introduced in June, replaced the earlier 2011-12 base year and expanded the core sector basket to nine industries from eight with the inclusion of iron ore. 

The output expanded by 6.2% in the same month last year and by 5% in July this year.

During April-August, the pace of growth was higher at 4.3% compared to 2.4% in the same period of 2025-26.

Cement, electricity drive growth 

Cement production rose 12.5% year-on-year in August while electricity generation increased 11.6%. Iron ore output grew 5.5%, followed by steel at 3.4% and refinery products at 2.6%. 

On the other hand, coal, natural gas, crude oil, and fertiliser production contracted during the month. Iron ore, electricity, and cement have emerged as the key drivers of overall core sector growth in recent months, according to the data. 

Core sector growth at 4.3% in April-August 

The ICI recorded cumulative growth of 4.3% during April-August 2026, compared with 2.4% in the corresponding period a year earlier. 

The nine core industries together account for a significant share of India's industrial output and are closely watched as an indicator of broader economic activity. The August data showed that growth remained broad-based across some of the major infrastructure-linked sectors, even as output contracted in four industries.