India’s Core Industrial Activity Rises 4.8 Per Cent In August; Cement Leads Growth

India’s core industrial activity expanded 4.8 per cent year-on-year in August 2026, supported by strong growth in cement, electricity and iron ore.

The provisional growth, measured through the Index of Core Industries (ICI), was slightly below July’s final expansion of 5.0 per cent.

Cement output climbed 12.5 per cent, while electricity rose 11.6 per cent. Iron ore production increased 5.5 per cent. Steel and refinery products recorded growth of 3.4 per cent and 2.6 per cent, respectively.

Iron ore, electricity and cement remained key contributors to industrial production growth in recent months.

Coal, natural gas, crude oil and fertilisers, however, registered negative growth in August.

The ICI recorded cumulative growth of 4.3 per cent during April-August, against 2.4 per cent in the corresponding period last year.

The Commerce Ministry said the final July index was revised to 120.8 from the earlier provisional estimate of 121.2. July’s annual growth was revised down to 5.0 per cent from 5.4 per cent.

The Office of Economic Adviser, DPIIT, introduced the revised ICI series with the 2022-23 base year in July. It replaced the earlier 2011-12 base-year series.

India’s manufacturing sector continued expanding in August, with the HSBC India Manufacturing PMI standing at 52.8.

Firms reported softer demand, weaker buying growth and slower inventory accumulation. Business expectations strengthened, with around 16 per cent of participants forecasting higher output over the next 12 months.

Confidence reached its highest level since May, though it remained subdued by historical standards.

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