New Delhi: The output of nine key infrastructure sectors slowed down to a three-month low of 4.8 per cent in August due to a fall in the production of coal, natural gas, crude oil, and fertiliser, according to the government data released on Monday.
The output expanded by 6.2 per cent in the same month last year and by 5 per cent in July this year. The previous low level was recorded in May at 3.2 per cent.
The data showed that the production of coal, natural gas, crude oil, and fertiliser dipped in August by 3.8 per cent, 4.9 per cent, 3.6 per cent and 12.4 per cent, respectively.
The growth rate in the output of refinery products, steel and iron ore slowed down to 2.6 per cent, 3.4 per cent and 5.5 per cent, during the month under review as against 3.4 per cent, 15.3 per cent and 7.9 per cent, respectively, in August 2025.
However, cement and electricity production grew by 12.5 per cent and 11.6 per cent, respectively, in August this year.
During April-August, the pace of growth was higher at 4.3 per cent compared to 2.4 per cent in the same period of 2025-26.
Commenting on the numbers, Rahul Agrawal, Principal Economist, ICRA Ltd, said the year-on-year growth in core output eased marginally in August partly on account of an unfavourable base.
The deceleration was broad based, with six of the nine sectors reporting a deterioration in their performance between these months, he said, adding that among the mining-related segments, coal and iron ore saw a material deterioration in their performance in August relative to July, largely owing to an adverse base.
Fertiliser output contracted for the sixth consecutive month in August, following the onset of the West Asia crisis, with the growth pace of the sector widening to double digits in the month, Agrawal said.
“Given these trends, we expect the IIP (Index of Industrial Production) growth to ease to approximately 5-6 per cent in August 2026 from 6.7 per cent in July 2026,” he added.
