Intro: Cement production rose 12.5% and electricity generation increased 11.6%, while several energy sectors contracted during the month.
New Delhi
India’s core industrial activity grew 4.8% year-on-year in August 2026, supported by strong performances in cement, electricity and iron ore, according to provisional data released by the Commerce Ministry.
The growth in the Index of Core Industries (ICI), which tracks eight key infrastructure sectors, was slightly lower than the revised 5.0 per cent expansion recorded in July.
Cement production recorded the strongest growth among the major expanding sectors, rising 12.5% in August. Electricity output increased 11.6%, while iron ore production grew 5.5%. Steel and refinery products also expanded, registering growth of 3.4% and 2.6%, respectively.
The ministry said iron ore, electricity and cement have emerged as major contributors to industrial production growth in recent months. However, coal, natural gas, crude oil and fertilisers recorded negative growth during August.
The cumulative growth of the core industries during April-August stood at 4.3%, based on provisional estimates. This was significantly higher than the 2.4% growth recorded during the corresponding period of the previous year.
The government also revised July’s core sector index to 120.8 from the earlier provisional estimate of 121.2. Consequently, July’s annual growth rate was revised downward to 5.0% from 5.4%.
Meanwhile, the manufacturing sector continued to expand in August, with the HSBC India Manufacturing PMI standing at 52.8. However, softer demand affected buying activity and inventory levels, even as business confidence improved.