India’s core sector growth eased to 0.5% year-on-year in May, marking the slowest pace of expansion in seven months as output declined across several key infrastructure industries.
The growth in the Index of Eight Core Industries slowed from 1.8% in April, according to data released by the government on Monday.
The slowdown was led by a sharp decline in coal production, which contracted 9.3% year-on-year during the month. Crude oil output fell 4.6%, while natural gas production declined 4.9%.
Petroleum refinery products also witnessed a significant contraction, with output falling 8.7% from a year earlier. Fertiliser production declined 0.9% during the month.
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Despite the broad-based weakness, some sectors continued to post healthy growth. Steel output rose 5% year-on-year, while cement production expanded 8.4%, supported by continued construction and infrastructure activity.
The eight core industries—coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity—collectively account for 40.27% of the weight in the Index of Industrial Production (IIP), making them a key indicator of industrial activity.
The sharp moderation in May’s core sector output suggests industrial momentum weakened at the start of the financial year’s first quarter, with declines in energy-related sectors offsetting gains in steel and cement.