With disruptions in the supply chain, growth of eight core infrastructure industries shrank 0.4 per cent in March, data from Commerce & Industry Ministry showed. This is the first contraction in five months and the weakest performance of core sector in nearly two years. Growth rate was 2.8 per cent in February.
“The production of fertilizers, crude oil, coal and electricity recorded negative growth in March,” a statement by Commerce & Industry Ministry said. However, steel and natural gas, showed some upward movement. These eight sectors contribute 40 per cent in overall industrial growth number.
War impact
Fertilizers recorded a major dip where output plunged 24.6 per cent in March. Fertilizer manufacturing faces further headwinds from the West Asia crisis, given the region’s role as a dominant supplier of the industry’s raw materials. Coal production declined 4 per cent while crude oil output fell 5.7 per cent, extending a prolonged contraction in domestic hydrocarbon production. Electricity generation also slipped 0.5 per cent suggesting softer power demand or favourable weather.
“While an adverse base weighed on electricity generation, a shortage of inputs amidst the West Asia crisis curtailed the fertiliser output,” said Aditi Nayar, Chief Economist with ICRA. The growth in steel and cement output also weakened in March relative to February, suggesting that construction activity slowed in the month. Natural gas output expanded by 6.4 per cent in March , the fastest pace in 22 months, as domestic players ramped up production, amidst the decline in imports from West Asia.
Given these trends, “and the adverse impact of the surge in energy prices and constrained availability, ICRA expects the IIP growth to slow to 1-2 per cent in March as against 5.2 per cent in February,” Nayar said.
Published on April 20, 2026