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India's Core Sector Growth Slows to 4% in January on Oil and Gas Drag

The provisional reading points to softer factory output, according to economists.

Overview

  • Government data show the eight core industries rose 4% year-on-year in January, down from a revised 4.7% in December and 5.1% a year earlier.
  • Construction-linked segments stayed firm, with steel up 9.9% and cement up 10.7% alongside gains in electricity (3.8%), fertilisers (3.7%) and coal (3.1%).
  • Hydrocarbon output contracted as crude oil fell 5.8% and natural gas declined 5.0%, while petroleum refinery products recorded no year-on-year growth.
  • Cumulative growth for April–January FY26 stands at 2.8%, trailing the 4.5% pace in the same period last year.
  • Economists highlight a broad-based deceleration and expect January IIP to ease (ICRA about 5.5%, Bank of Baroda 4–5%); the core figures carry 40.27% weight in IIP and remain provisional.