Overview
- Provisional government data released Monday showed the Index of Eight Core Industries grew 0.5% year‑on‑year in May 2026, down from April's revised 1.8%.
- Five of the eight sectors contracted in May, led by coal (–9.3%), refinery products (–8.7%), crude oil (–4.6%) and natural gas (–4.9%).
- Steel, cement and electricity were the main positives, with steel up 5%, cement up 8.4% and electricity generation up 8.7%, reflecting ongoing infrastructure and power demand.
- Refinery products carry about 28% weight in the core basket and their 8.7% fall amplified the aggregate slowdown; analysts cite the West Asia crisis, higher crude imports and softer global prices as partial causes.
- The April–May cumulative growth for the core industries stood at 1.1% (provisional) and analysts expect weaker IIP readings for May with near‑term risks concentrated in energy supply and inventory adjustments.