Core Industries Index Inches Up in May 2026 as Manufacturing Strength Masks Petrochemical Slump
The combined performance of India's core industries registered a marginal gain in May 2026. The provisional data showed the Index of Eight Core Industries (ICI) increasing by 0.5 per cent compared to May 2025. This subtle rise comes despite significant declines across key energy and resource sectors, such as Crude Oil and Petroleum Refinery Products.The ICI captures the performance of eight critical industries: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity. These core industries collectively constitute 40.27 per cent of the weight included in the Index of Industrial Production (IIP). Cumulatively, the ICI saw a modest increase of 1.1 per cent during April to May 2026-27.
Combined Core Industries Register Marginal Gain in May 2026
While the overall index showed only minimal growth in May, specific sectors delivered robust performance. Steel production increased by 5 per cent over May 2025, and Electricity generation saw a strong jump of 8.7 per cent. Cement manufacturing also recorded substantial positive momentum, rising by 8.4 per cent against the previous year's figure.This data set is provisional, and index figures for the Core Industries may be revised as updated information becomes available from source agencies. The ICI serves as a key indicator of industrial health across primary resource extraction and conversion industries in the economy.
Resource Sectors Face Headwinds as Crude Oil Production Slips
The performance of India's core energy supply chain showed notable pressure points in May 2026. Coal production declined sharply by 9.3 per cent compared to May 2025, with its cumulative index showing a decline of 9.1 per cent over the April to May period. Crude Oil production also decreased by 4.6 per cent over the corresponding period in May 2026.Natural Gas experienced similar contraction, recording a decline of 4.9 per cent in production for the month. The pressure points were concentrated heavily in refining, as Petroleum Refinery Products saw a considerable fall of 8.7 per cent compared to May 2025. Fertilizers also dipped slightly, declining by 0.9 per cent.
Power and Construction Surge Counter Petrochemical Decline
The manufacturing and power sectors acted as crucial stabilizers for the combined index. Cement production increased robustly by 8.4 per cent in May 2026 over May 2025. Similarly, Electricity generation demonstrated significant upward momentum, rising by 8.7 per cent against last year’s figure.The performance of Steel production also recorded a healthy rise of 5 per cent in May 2026, contributing positively to the industrial output. These positive movements in Cement and Electricity successfully mitigated the heavy decline observed across the petroleum refining chain.
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