Overview
- Provisional data released Thursday by the DPIIT show the Index of Core Industries grew 5.4% year-on-year in July, down from a revised 6% in June.
- The ICI was rebased to 2022-23 and expanded to nine sectors with iron ore added, a change that alters month-to-month comparability and contribution patterns.
- Iron ore (29.5%), cement (13.1%) and electricity (9%) were the top drivers in July while natural gas fell 3.7%, crude oil fell 5.3% and fertiliser output dropped 8%.
- On a cumulative basis the index rose 4.3% in April–July 2026 compared with 1.5% a year earlier, showing stronger year-to-date momentum despite the July slowdown.
- Analysts at India Ratings and ICRA caution that an unfavourable base effect and supply shocks—notably reduced gas for fertiliser production linked to the West Asia conflict—could push core growth below 5% in the near term.