Growth Eases in January 2026
Core Sector Momentum Moderates as Construction Demand Drives Steel and Cement: India’s eight core industries recorded a growth of 4% in January 2026, lower than the revised 4.7% in December 2025. The data was released under the Index of Core Industries (ICI) by the Commerce and Industry Ministry.
The moderation was largely broad-based, indicating a sequential slowdown across several sectors. However, the overall expansion reflects continued resilience in infrastructure-linked activities.
Sector-wise Performance Trends
Among the strong performers, Cement production surged by 10.7%, marking continued double-digit growth. Steel output rose by 9.9%, reflecting strong construction demand. Electricity grew by 3.8%, while fertilisers increased by 3.7% and coal by 3.1%.
On the weaker side, Crude Oil contracted by 5.8%, registering its fifth consecutive month of decline. Natural Gas output fell by 5%, marking the nineteenth straight month in negative territory. Except for refinery products, most sectors showed some deceleration compared to December.
Static GK fact: The eight core industries together account for 40.27% weight in the Index of Industrial Production (IIP), making them a critical leading indicator of industrial performance.
Understanding the Index of Core Industries
The Index of Core Industries measures the combined performance of key infrastructure sectors: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilisers, Steel, Cement, and Electricity.
These sectors form the backbone of India’s industrial economy. Any movement in their output directly impacts the broader IIP numbers and economic momentum.
Static GK Tip: The Index of Industrial Production (IIP) is released monthly and measures the growth of mining, manufacturing, and electricity sectors.
Industrial Output Remains Strong
Despite the slowdown in core sector growth, India’s overall industrial output remained robust. The IIP grew by 7.8% year-on-year, marking a 26-month high.
This expansion was driven mainly by strong performance in manufacturing, mining, and electricity. For the first ten months of FY26 (April–January), core sectors grew by 2.8%, compared to 4.5% during the same period last year.
Why Steel and Cement Continue to Shine
Economists attribute the strong growth in steel and cement to sustained infrastructure spending by the central government. Increased participation by states in capital expenditure has also played a crucial role.
Stable demand in housing and real estate, along with ongoing construction projects, has supported production levels. According to industry assessments, the resilience of these sectors signals continued momentum in construction activity, even as energy-linked sectors face challenges.
Static GK fact: India is among the world’s largest producers of steel and cement, and these sectors are closely linked to infrastructure development and urbanisation.
Static Usthadian Current Affairs Table
Core Sector Momentum Moderates as Construction Demand Drives Steel and Cement:
| Topic | Detail |
| Core Sector Growth January 2026 | 4% growth |
| Previous Month Growth | 4.7% in December 2025 (revised) |
| Strongest Performer | Cement (10.7%) |
| Steel Growth | 9.9% |
| Crude Oil Trend | -5.8%, fifth consecutive contraction |
| Natural Gas Trend | -5%, 19th month in decline |
| ICI Weight in IIP | 40.27% |
| IIP Growth January 2026 | 7.8% year-on-year |
| FY26 Core Growth (Apr–Jan) | 2.8% |
