Economic activity in India’s core industrial sectors saw growth slow to 5.4% in July 2026 from 6% in June, according to official data released on Thursday (August 20, 2026). This was driven by a significant slowdown in the fertilisers, iron ore, and steel sectors, accompanied by a continued contraction in the natural gas and crude oil sectors. 

The data on the Index of Core Industries (ICE) released by the Ministry of Commerce and Industry, however, showed that July’s growth was still the second-fastest in seven months. The Ministry released a new series of the ICE in July, which means that a historical comparison is possible only up to June 2025.  

Within the index, the fertilisers sector contracted 8% in July 2026, as compared to a contraction of 3.3% in June. The sector had grown 1.9% in July of last year. This performance is likely due to the deficient and patchy ongoing monsoon, and the resultant lower levels of sowing taking place. 

The iron ore sector saw growth slowing to 29.5% in July 2026, from 44.5% in June. However, it is important to point out that these relatively high growth levels are on a low base, since the sector contracted 16.4% and 7.1% in June and July of last year, respectively. 

This low base effect was also apparent in the coal sector’s 11-month high growth rate of 7.6% in July 2026. The sector had contracted 12.3% in July last year. 

Growth in the steel sector slowed to 2.9% in July 2026, the lowest in the 14 months for which there is data, down from 5.6% in June. 

The natural gas and crude oil sectors continued their long streak of contractions. The natural gas sector contracted 3.7% in July 2026, while the crude oil sector contracted 5.3%. Both sectors have contracted continuously for the last 14 months for which there is data. 

The refinery products sector, however, snapped a three-month streak of contractions by growing 2.7% in July 2026, the sector’s best performance in nine months. 

The two relative bright spots among the core sectors were the cement and electricity sectors. The electricity sector grew 9% in July 2026, albeit slower than the 11.4% seen in June. The cement sector saw growth hit 13.1% in July 2026, a seven-month high, over a 11.1% growth in July last year.