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India's Core Sector Output Contracts 0.4% in March 2026 — Worst in 19 Months

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India's eight core sector industries contracted by 0.4% in March 2026 — the worst performance in 19 months — with four of the eight sectors recording negative growth. The overall core sector growth for FY2025-26 was the lowest since the COVID-19 pandemic. The contraction was primarily driven by the West Asia conflict disrupting energy supply chains, raising input costs, and dampening industrial output. The eight core sectors — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity — account for 40.27% of India's Index of Industrial Production (IIP).

Key Facts & Details

7 points
  • 1
    Core sector output contracts 0.4% in March 2026 — worst in 19 months
  • 2
    4 of 8 core sectors recorded negative growth in March
  • 3
    Full-year FY26 core sector growth is lowest since COVID-19 pandemic

Deep Dive

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    Eight core sectors have 40.27% weight in India's IIP (Index of Industrial Production)
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    The eight sectors: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilisers, Steel, Cement, Electricity
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    IIP data is released monthly by the Office of the Economic Adviser, Ministry of Commerce
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    Core sector data is released by Ministry of Commerce & Industry
Q

Exam Focus

Likely MCQ: Eight core industries have what weight in India's IIP? → Answer: 40.27%

Related Topics

Banking Structure

Exam Relevance & Angle

Economy: Industrial production, core sector health, and macroeconomic indicators.

Target Exams

UPSC CSESSC CGLSBI POIBPS PORBI Grade B

Background & Context

India's Eight Core Sectors (in decreasing order of IIP weight):

  1. Refinery Products (28.04%)
  2. Electricity (19.85%)
  3. Steel (17.92%)
  4. Coal (10.33%)
  5. Crude Oil (8.98%)
  6. Natural Gas (6.88%)
  7. Cement (5.37%)
  8. Fertilisers (2.63%)

Total weight in IIP: 40.27%

IIP (Index of Industrial Production) measures the quantum of changes in industrial production in India, compiled by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI). Base year: 2011-12.

The March 2026 contraction reflects: rising energy costs from the West Asia conflict, supply chain disruptions affecting refinery throughput, and weaker cement/steel demand due to construction slowdown during the heat wave.

Related GK Concepts

Must Know
Core SectorIIPIndustrial ProductionWest Asia ImpactNSOMoSPI

Test Yourself

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The eight core industries together have what weight in India's IIP?

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India's Core Sector Output Contracts 0.4% in March 2026 — Worst in 19 Months — Current Affairs 2026-04-21