Core Sector Output Sees First Decline in Five Months

The core sector output contracted by 0.4% in March, marking its first decline in five months due to decreased production in coal, crude oil, fertiliser, and electricity. Despite natural gas showing healthy growth, the sector's overall performance was hindered by energy price surges and input shortages.

In an unexpected turn of events, the core sector output recorded a contraction of 0.4% in March, according to official data released on Monday. This marks the first decline in five months, attributed mainly to reduced production in coal, crude oil, fertiliser, and electricity.

In stark contrast, the eight core infrastructure sectors had shown a growth of 2.8% in February 2026. Over the fiscal year 2025-26, these sectors recorded a growth of just 2.6%, down from 4.5% in the previous fiscal year.

Aditi Nayar, Chief Economist at ICRA, highlighted the impact of external factors like the West Asia crisis and surging energy prices, which further restricted growth. These conditions caused a significant 24.6% year-on-year dip in fertiliser production, affecting overall sector performance.