Core-Sector Chill: Infrastructure Output Crawls to 0.5 % in April

India’s core infrastructure sectors almost stalled in April, with output expanding just 0.5 % y-o-y after a 4.6 % rise in March, commerce-ministry data released on 20 May show. The eight core industries—coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity—account for 40 % of the Index of Industrial Production, so the slowdown points to weaker momentum at the very start of FY 2025-26.

Crude oil production shrank 2.8 % and refinery throughput fell 4.5 %, while natural-gas output dipped 0.4 %. Fertiliser output contracted 4.2 %. Positive contributions came from cement (+6.7 %), coal (+3.5 %) and steel (+3 %), but electricity generation edged up only 1 %, well below March’s 7.5 % clip. At 0.5 %, April marks the weakest core-sector print in eight months and is far below the 6.9 % growth recorded a year earlier.

Economists say the sharp deceleration underscores fragile industrial demand amid high borrowing costs and uneven global conditions. Sustained public capital expenditure and swifter project clearances will be vital if India is to meet its 6.5 % GDP-growth target for FY 26. Upbeat monsoon forecasts could temper electricity demand, further testing output gains in coming months.