The moderation comes after December’s stronger print, though January’s performance was supported by robust output in steel and cement.
The combined Index of Eight Core Industries (ICI) measures the production of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, and accounts for 40.27% of the weight in the Index of Industrial Production (IIP).
On a cumulative basis, core sector growth stood at 2.8% (provisional) during April–January 2025-26 compared with the corresponding period last year.
Construction-linked sectors drive growth
Steel production rose 9.9% year-on-year in January, while cement output expanded 10.7%, indicating sustained momentum in construction and infrastructure activity.
Electricity generation increased 3.8% and fertiliser production grew 3.7% during the month. Coal output also rose 3.1% compared with January 2025.
During April–January 2025-26, steel production increased 9.8%, cement output rose 9.1%, fertiliser production grew 1.9%, and electricity generation edged up 0.8%.
Oil and gas remain under pressure
The overall growth was weighed down by continued contraction in hydrocarbons. Crude oil production declined 5.8% in January from a year ago, while natural gas output fell 5.0%.
For the April–January period, crude oil production contracted 2.1% and natural gas output dropped 3.4%.
Petroleum refinery products output remained unchanged in January at an index level of 147.2 (provisional) compared with a year earlier. Cumulatively, refinery production rose marginally by 0.1% during April–January.
Coal production, despite posting a 3.1% increase in January, recorded a marginal cumulative decline of 0.3% during the financial year so far.