Key Infrastructure Sectors' Output Rises By 5.4% In July

Production growth of nine key infrastructure sectors rose to 5.4% in July following an increase in output of coal, refinery products, cement, electricity and iron ore.

However, the growth rate was slower than in June, when these sectors expanded by 6%.

The core sectors' growth was 3.2% in July 2025.

From June, the data has been released with a new base year, 2022-23, replacing the earlier base year of 2011-12. The government has added iron ore to the index, increasing the number of core sectors to nine.

According to the official data released on Thursday, production of crude oil, natural gas, and fertiliser declined during the month.

The rate of growth in steel output slowed down to 2.9% in July as against 15.7% in the same month last year.

During April-July 2026-27, the key sectors expanded by 4.3% against 1.5% in the same period last year.

Commenting on the data, Devendra Pant, Chief Economist, India Ratings and Research, said that fertilizers, crude oil and natural gas that account for 14% of the core industries' output, continued to contract, though natural gas contraction was slower than the preceding month.

On the other hand, iron ore, electricity and steel that account for 53.4% of the index recorded slower growth compared to a month earlier.

"In August 2026, core industries output could further slow down to under 5%, owing to base effect," he said.

Aditi Nayar, Chief Economist, ICRA Ltd, said, "Given the trends in core output, we expect the IIP growth to moderate to about 6-6.5% in July 2026 from 7.3% in June 2026."