Economy

India’s Core Infrastructure Growth Slows to Seven-Month Low of 0.5% in May

Fertiliser production also remained subdued, growing by only 0.9% in May, lower than the level recorded in the same month last year.

India’s Core Infrastructure Growth Slows to Seven-Month Low of 0.5% in May

A coal-fired power plant in New Delhi. Photo: X/@ReutersAsia

India’s core infrastructure sector expanded by just 0.5% in May, marking a seven-month low and signalling a further slowdown in key industries, according to official data released on Monday (June 22).

The latest figures indicate a sharp deceleration from April, when the Index of Eight Core Industries (ICI) had registered a growth rate of 1.8%. In comparison, the sector had grown by 1.2% in May 2025, reported Deccan Herald.

The May performance was the weakest since October 2025, when the sector had contracted by 0.1%, and represented the second-lowest reading recorded in the past 21 months. Out of the eight industries that make up the index, five registered lower output compared to the corresponding month last year.

Coal production witnessed the steepest decline, shrinking by 9.3% year-on-year. Refinery products, which carry the highest weight in the index, recorded an 8.7% drop in output, the sharpest contraction in the segment in 42 months.

Data released by the Ministry of Commerce and Industry also showed declines in energy-related sectors amid the ongoing West Asia crisis. Crude oil production fell by 4.6%, while natural gas output declined by 4.9% compared to the previous year.

Fertiliser production also remained subdued, growing by only 0.9% in May, lower than the level recorded in the same month last year.

During the first two months of the current financial year, cumulative fertiliser production in April-May 2026 was 4.5% lower than the corresponding period of 2025, underscoring the broader weakness across several core sectors.

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