Forbes India
India’s core sector grew 1.7 percent in April, a modest uptick from 1.2 percent in the revised March 2026 figure, driven primarily by output in steel, cement and electricity. Meanwhile, energy-related sectors continued to weigh on the headline number, government data released on Wednesday showed.Rahul Agrawal, senior economist at ICRA, notes that despite inching up in April, the core sector output “remains quite subdued despite a favourable base”.“As many as five of the eight sectors registered a contraction in output in the month, barring steel, cement and electricity generation, suggesting that economic activity in some sectors was impacted by the West Asia crisis,” he adds.Steel and cement recorded the highest growth rates in April. Steel production expanded 6.2 percent in April compared to 7.7 percent in the previous month. Cement output surged 9.4 percent, twice the growth rate of 4.7 percent in March, reflecting sustained momentum in construction and infrastructure activity. Electricity generation also contributed positively, rising 4.1 percent, up from 0.8 percent in the previous month.The drag came squarely from the fossil fuels. Coal production contracted 8.7 percent, its sharpest monthly decline since July 2025. Natural gas output dropped 4.3 percent and crude oil slipped 3.9 percent, extending a persistent contraction in domestic hydrocarbon output. Fertiliser production, a sector sensitive to both global energy costs and agricultural demand cycles, contracted 8.6 percent, as did petroleum refinery products at 0.5 percent.The April reading marks the second consecutive month of below 2 percent growth.
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