Core Sector Output Declines by 0.4% in March 2026 Due to Decreased Coal and Power Production
Core sector contracts 0.4% in March amid fall in coal, power output
Business Standard
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In March 2026, India's core sector output fell by 0.4%, marking its first decline in five months. This contraction was driven by reduced production in coal, crude oil, fertilizer, and electricity sectors, following a 2.8% growth in February 2026.
- 01Core sector output contracted by 0.4% in March 2026.
- 02This is the first decline in five months.
- 03Production decreases were noted in coal, crude oil, fertilizer, and electricity.
- 04The sector had previously expanded by 2.8% in February 2026.
- 05Overall growth for the 2025-26 fiscal year was 2.6%.
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India's core sector output contracted by 0.4% in March 2026, marking the first decline in five months. This downturn was primarily attributed to a fall in the production of coal, crude oil, fertilizer, and electricity. In February 2026, the core sectors had shown a robust growth of 2.8%. For the fiscal year 2025-26, the overall growth rate for these eight core infrastructure sectors was 2.6%, a decrease from 4.5% in the previous fiscal year (2024-25). The decline in March indicates potential challenges ahead for infrastructure and energy production in India.
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The contraction in core sector output may lead to slower economic growth and could affect job creation in sectors reliant on infrastructure development.
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