In February 2026, the Index of Eight Core Industries (ICI) in India recorded a growth of 2.3%

In February 2026, the Index of Eight Core Industries (ICI) in India recorded a growth of 2.3%

¨     In February 2026, India's Index of Eight Core Industries (ICI) recorded a growth of 2.3%, remaining at the same level as the previous year.

¨     The primary drivers of this growth were the strong performance of the steel, cement, fertilizer, coal, and electricity sectors.

¨     Conversely, a decline in crude oil, natural gas, and refinery products exerted a negative influence on the overall growth rate, thereby limiting the overall expansion.

ICI Growth Performance in February 2026

¨     The 2.3% growth recorded in February 2026 indicates a moderate expansion compared to the 4.7% growth seen in January 2026. This trend signals a certain slowdown in industrial momentum, which may be attributed to various factors.

¨     However, the cumulative growth during the period from April to February 2025-26 stood at 2.9%, reflecting a steady yet measured expansion. These figures suggest that while certain sectors are performing well, others continue to face challenges.

Sector-wise Performance: Growth Driven by Steel and Cement

¨     In February 2026, sectors linked to infrastructure recorded the strongest growth. Steel production rose by 7.2%, while cement production witnessed a sharp increase of 9.3%, signaling robust demand within these sectors.

¨     Furthermore, the fertilizer sector grew by 3.4%, coal by 2.3%, and electricity by 0.5%; these gains exerted a positive influence on the overall index and provided support to the aggregate growth figure.

Declining Sectors: The Impact of Oil and Gas

¨     Conversely, a decline in certain sectors impacted the overall growth rate. Crude oil production witnessed a decline of 5.2%, natural gas recorded a drop of 5.0%, and petroleum refinery products observed a decrease of 1.0%.

¨     These declines reflect structural challenges within the energy sector, global geopolitical conditions, and fluctuations in demand, which collectively exerted a negative impact on overall industrial growth.

What is the Index of Core Industries (ICI)?

¨     The Index of Core Industries (ICI) is a crucial indicator that measures the performance of eight key sectors of India's industrial economy. These sectors—comprising coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity—are considered the backbone of the country's industrial structure.

¨     As they contribute approximately 40.27% to the Index of Industrial Production (IIP), their performance directly influences the nation's overall industrial growth and economy. The ICI is regarded as a leading indicator of economic activity, assisting policymakers and analysts in understanding economic trends and taking necessary measures.