Page 32 - Policy Economic Report -August 2026

POLICY AND ECONOMIC
OIL & GAS MARKET

The improvement in core sector activity during July was led by strong performance across Iron Ore,
Cement, Electricity, Coal, Steel and Refinery Products. Iron Ore recorded the strongest year-on-year
growth of 29.5 per cent, followed by Cement at 13.1 per cent, Electricity at 9.0 per cent, Coal at 7.6 per
cent, Steel at 2.9 per cent and Refinery Products at 2.7 per cent. In contrast, Natural Gas (-3.7 per cent),
Crude Oil (-5.3 per cent) and Fertilizers (-8.0 per cent) recorded negative growth during the month. Iron
Ore, Electricity and Cement continued to emerge as the principal drivers of overall ICI growth.

Figure 16: Index of Core Industries (ICI) and Year-on-Year Growth Rate (July 2025 – July 2026)

Source: Office of Economic Adviser, DPIIT, Ministry of Commerce & Industry

The sector-wise performance indicates that the improvement was relatively broad-based, although the
intensity of growth varied considerably across industries. Iron Ore recorded a particularly strong increase
in its index from 148.7 in June to 154.8 in July, while the index for electricity increased from 132.3 to
134.4 and Steel from 136.8 to 141.0. Cement, however, moderated from an index of 138.4 in June to
129.2 in July, despite maintaining strong year-on-year growth. Coal also declined from 107.6 to 93.8 on a
month-on-month basis, while Refinery Products and Fertilizers recorded relatively modest movements.

Figure 17: Sector-wise Growth Rate of Core Industries – June and July 2026

Source: Office of Economic Adviser, DPIIT, Ministry of Commerce & Industry Page | 31

August 2026