Economy & Banking★ Must Know

India's core sector growth slows to seven-month low of 0.5% in May 2026

Monday, 22 June 2026 5 min readSource: Business StandardArticle 6 of 9

Growth in India's eight core industries (the Index of Core Industries, ICI) slowed to a seven-month low of 0.5% year-on-year in May 2026, down from an upwardly revised 1.8% in April, according to data released by the Ministry of Commerce and Industry on Monday, June 22, 2026. It was the weakest reading since the 0.1% contraction in October 2025. The slowdown was led by sharp contractions in coal and petroleum products (the latter the steepest in about 42 months), with only three of the eight sectors recording higher output. Cumulative core-sector growth for April–May of FY27 stood at a subdued 1.1%.

Key Facts & Details

8 points

1
India's eight core industries grew 0.5% in May 2026, a seven-month low.
2
This was down from a revised 1.8% in April 2026 and the weakest since October 2025 (-0.1%).
3
Coal and petroleum products contracted sharply; only 3 of 8 sectors grew.
4
Petroleum products saw their steepest contraction in roughly 42 months.
5
Cumulative growth for April–May FY27 was 1.1%; data released by the Ministry of Commerce and Industry.

Deep Dive

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The eight core industries are coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity.
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The ICI carries about a 40% weight in the Index of Industrial Production (IIP), so core-sector weakness usually points to softer IIP.
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Energy-sector disruptions linked to the West Asia situation were cited among the pressures.

Exam Focus

What was the growth rate of India's eight core industries in May 2026, and which sectors dragged it down?

Exam Relevance & Angle

Core-sector and IIP figures are recurring economy questions; the exact percentage, the 'seven-month low' tag and the sectors responsible are classic exam hooks across banking, SSC and UPSC.

Target Exams

SBI POIBPS PORBI Grade BNABARD Grade ASSC CGLUPSC CSEState PCS

Background & Context

The Index of Eight Core Industries (ICI) measures the combined output of coal, crude oil, natural gas, refinery (petroleum) products, fertilisers, steel, cement and electricity. Compiled by the Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT), it is released monthly. These industries together account for about 40.27% of the weight of items in the Index of Industrial Production (IIP), making the ICI an early signal of industrial momentum. A low or negative print indicates weak infrastructure-linked activity.