NEW DELHI: The country's core sector grew at its fastest pace in 13 months in Aug, led by robust expansion in the output of coal, steel, and refinery products , as well as the base effect.
Data released by the commerce and industry ministry on Monday showed that the eight core sectors - spanning coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity - rose by an annual 6.3% in Aug. This was faster than the 3.7% growth in July and a contraction of 1.5% in Aug last year.
The core sector accounts for nearly 41% of the index of industrial production (IIP), and the performance of the sector impacts the IIP numbers, which will be released later this month. The coal sector grew by 11.4% in Aug after contracting by 12.3% in the previous month. The steel sector rose by 14.2% in Aug after a robust 16.6% growth in July, while the cement sector grew by 6.1% during the month, slower than the 11.6% expansion in July.
Two sectors - crude oil and natural gas - contracted in Aug, while refinery products grew by 3% in Aug after contracting by 1.1% in July. The electricity sector grew by 3.1% compared to an expansion of 3.7% in July and a contraction of 3.7% in Aug last year.
"The uptick was particularly driven by coal, which witnessed an expansion of 11.4% in the month, following a double-digit contraction in July 2025. Overall, five of the eight sectors, barring steel, cement, and electricity, saw an improvement in their year-on-year growth performance in Aug vis-a-vis July," said Aditi Nayar, chief economist at ratings agency ICRA.
Data released by the commerce and industry ministry on Monday showed that the eight core sectors - spanning coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity - rose by an annual 6.3% in Aug. This was faster than the 3.7% growth in July and a contraction of 1.5% in Aug last year.
The core sector accounts for nearly 41% of the index of industrial production (IIP), and the performance of the sector impacts the IIP numbers, which will be released later this month. The coal sector grew by 11.4% in Aug after contracting by 12.3% in the previous month. The steel sector rose by 14.2% in Aug after a robust 16.6% growth in July, while the cement sector grew by 6.1% during the month, slower than the 11.6% expansion in July.
Two sectors - crude oil and natural gas - contracted in Aug, while refinery products grew by 3% in Aug after contracting by 1.1% in July. The electricity sector grew by 3.1% compared to an expansion of 3.7% in July and a contraction of 3.7% in Aug last year.
"The uptick was particularly driven by coal, which witnessed an expansion of 11.4% in the month, following a double-digit contraction in July 2025. Overall, five of the eight sectors, barring steel, cement, and electricity, saw an improvement in their year-on-year growth performance in Aug vis-a-vis July," said Aditi Nayar, chief economist at ratings agency ICRA.
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