New Delhi, September 21 (Daily Kiran) : India’s core sector registered a growth of 4.8% in August 2026, driven by robust performances in sectors such as cement, electricity, and iron ore. This preliminary figure reflects a slight decline from the 5% growth recorded in July.
According to the Ministry of Commerce and Industry, cement production surged by 12.5%, while electricity generation increased by 11.6%. Iron ore production rose by 5.5%, steel by 3.4%, and refinery products by 2.6%. Recent months have seen iron ore, electricity, and cement as the main contributors to the overall growth of the core sector.
Conversely, sectors like coal, natural gas, crude oil, and fertilizers experienced negative growth during August. Cumulatively, the core sector grew by 4.3% from April to August 2026, compared to just 2.4% in the same period last year, indicating stronger activity in these industries.
The government also revised the core industry index for July 2026, lowering it from 121.2 to 120.8. Consequently, the annual growth rate for July has been adjusted from 5.4% to 5%.
In addition, India’s manufacturing sector continued its expansion in August. The latest HSBC India Manufacturing PMI data showed a reading of 52.8, indicating growth in production activities. However, companies reported a slowdown in demand momentum, which affected the pace of raw material purchasing and inventory building. Despite this, business confidence remained strong.
Approximately 16% of surveyed companies expect to increase production in the next 12 months, while others anticipate that activities will stabilize at current levels. Business confidence has reached its highest point since May, although it remains weak by historical standards.
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