India’s core infrastructure industries recorded a five-month high growth of 5% in June, driven by a sharp increase in cement, electricity and iron ore production, according to government data released on Monday.
The expansion marks a significant improvement from the revised 3.2% growth recorded in May 2026 and is well above the 1.1% increase registered in June last year, indicating stronger momentum in infrastructure activity at the close of the first quarter of FY 2026-27.
The latest figures are the first to be published under the revised Index of Core Industries (ICI), with 2022-23 as the new base year, replacing the earlier 2011-12 series. The government has also expanded the index by including iron ore, increasing the number of core sectors covered from eight to nine.
The revised series is intended to provide a more accurate reflection of India’s current industrial landscape. As the core sector index serves as a key high-frequency indicator of industrial and infrastructure performance, the updated base year and broader sectoral coverage are expected to improve the quality of economic assessment.
Sector-wise, cement and electricity production each grew 9.8% in June, while iron ore recorded the strongest performance, surging 43.9% after being included in the revised index.
The robust growth in these industries offset weaker performance in other sectors. Output declined in crude oil, natural gas, refinery products and fertilisers during the month, highlighting the uneven nature of the recovery across the core industries.
During the April-June quarter of FY 2026-27, the combined output of the nine core sectors expanded by 3.6%, compared with growth of just 1% during the corresponding period a year earlier. The improvement suggests that infrastructure-linked sectors have begun the new financial year on a stronger footing, although growth remains uneven across individual industries.
With the transition to the new series, future comparisons will be based on the 2022-23 production structure and the expanded nine-sector basket. The upcoming monthly releases will provide a clearer indication of whether June’s stronger performance signals a sustained improvement in industrial activity or reflects temporary strength in sectors such as cement, electricity and iron ore.