India's core sector shrinks 0.4% in March to 19-month low
India's core sector shrinks 0.4% in March to 19-month low
India’s core sector contracted 0.4% in March, its weakest in 19 months, led by a record fertiliser drop with weakness in crude oil and electricity.
India’s core sector registered a -0.4% year-on-year contraction in March, marking the weakest reading in 19 months. Of the eight core industries, four slipped into the red, underscoring a broad slowdown. The steepest drag came from fertilisers, which fell 24.6% in March—the sharpest decline on record. Crude oil output dropped 5.7%, coal fell 4%, and electricity generation slipped 0.5%. On the brighter side, natural gas output rose 6.4%, and cement and steel posted modest gains of 4% and 2.2% respectively. Petroleum refinery products eked out a 0.1% uptick.
For the full fiscal year 2025-26, the core sector’s cumulative growth stood at 2.6%, well below the 4.5% pace seen in the previous financial year. The data comes amid external uncertainty from global energy markets, with the war in West Asia weighing on energy prices and input supplies for the petrochemicals sector. The mixed bag highlights that while some industries are holding up, others are facing sharp headwinds, continuing to shape the overall manufacturing outlook.
Analysts say the pattern suggests policy makers will need to monitor energy costs and input availability closely, even as core sectors retain some resilience in natural gas and refinery products. The February-to-March pace of rebound in cement and steel offers a pocket of relief, but the overall picture remains one of cautious moderation rather than a robust upturn.
