India’s core infrastructure sector maintained its growth momentum in July 2026, although the pace eased compared with the previous month. Output across nine key infrastructure industries rose 5.4 per cent year-on-year, according to provisional government data released on Thursday. The July expansion was slower than the revised 6 per cent growth recorded in June. The June figure itself was upgraded from the earlier provisional estimate of 5 per cent, indicating stronger-than-initially reported activity during the previous month.

The latest data comes from the revamped Index of Core Industries (ICI), which tracks nine major sectors and now uses 2022-23 as its base year. The revised index also includes iron ore as its ninth component, replacing the earlier series based on 2011-12.

Iron ore emerged as the strongest-performing segment among the nine sectors in July, with output jumping 29.5 per cent compared with the same month last year. Cement production followed with a 13.1 per cent increase, while electricity generation expanded 9 per cent.

Coal output rose 7.6 per cent year-on-year, adding to the overall expansion in core-sector activity. Steel production recorded more moderate growth of 2.9 per cent, while refinery products increased 2.7 per cent.

The performance highlights a sharp divergence between individual sectors. While mining, construction-related activity and electricity generation provided significant support, several other segments struggled during the month.

Natural Gas, Crude Oil And Fertiliser Output Decline

Not all components of the infrastructure index registered growth in July. Natural gas, crude oil and fertiliser production contracted during the month, weighing on the overall performance of the core sector.

Despite these declines, iron ore, cement and electricity continued to play an important role in supporting aggregate growth. Their strong performance has also made them important contributors to the sector’s expansion in recent months.

The mixed performance suggests that the recovery across India’s core industries remains uneven, with some sectors recording robust increases while others continue to face pressure.

Core Sector Growth Stronger In First Four Months

Looking beyond July’s monthly figure, the broader performance of the infrastructure sector has improved significantly during the opening four months of the financial year.

The Index of Core Industries expanded 4.3 per cent cumulatively between April and July 2026, based on provisional estimates. This compares with just 1.5 per cent growth recorded during the corresponding period a year earlier.

The stronger cumulative number indicates that core-sector activity has improved substantially over the previous year, even though the pace of expansion moderated in July.

The latest figures will also be closely watched for their implications for broader industrial activity, as the core industries remain an important indicator of economic momentum. The July slowdown, however, was accompanied by particularly strong growth in iron ore, cement and electricity, helping keep overall infrastructure output firmly in positive territory.