<p>New Delhi: Output of India’s core infrastructure sector fell by 0.4 per cent year-on-year in March, the worst performance in 19 months, dragged by a sharp decline in fertilisers, crude oil, coal and electricity production amid the West Asia conflict, as per official data released on Monday.</p><p>Fertiliser production in March was 24.6 per cent lower when compared with the same month last year. This dragged the overall production for the full year 2025-26 into negative over the previous year.</p><p>Crude oil production in March was 5.7 per cent down year-on-year while coal output dipped by 4 per cent, as per data released by the Ministry of Commerce and Industry.</p><p>The core sector growth as measured by the Index of Eight Core Industries (ICI) had posted a growth of 2.8 per cent in February. The eight core sectors, which include coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, account for 40.27 per cent weight of items included in the Index of Industrial Production (IIP).</p><p>According to ICRA, the weak core sector may drag IIP growth in March to 1.0-2.0 per cent from 5.2 per cent recorded in February.</p>.Core sector growth rises to 4-month high in December.<p>The average growth in core sector in 2025-26 stood at 2.6 per cent, which is the lowest in five years. Barring cement (8.6 per cent), electricity (0.9 per cent) and steel (9.1 per cent) all other sectors contracted in FY26.</p><p>Disruption in gas supply due to the West Asia conflict has badly hit fertiliser production in March.</p><p>“Fertiliser output in March 2026 declined by 24.6 per cent, the fastest decline in 2011-12 base data. The gas supply to fertiliser industry was reduced to 70-75 per cent in March 2026 due to Iran war, which is now increased to around 95 per cent. This is likely to have an adverse impact on fertilizer production even in April 2026,” said Devendra Pant, Chief Economist, India Ratings and Research.</p><p>The disruption in global supply prompted the boost in local production of natural gas in the country. Natural gas production in March was 6.4 per cent higher when compared with the same month last year.</p><p>“The growth in steel and cement output also weakened in March 2026 relative to February 2026, suggesting that construction activity slowed in the month,” said Aditi Nayar, Chief Economist, ICRA. </p>
<p>New Delhi: Output of India’s core infrastructure sector fell by 0.4 per cent year-on-year in March, the worst performance in 19 months, dragged by a sharp decline in fertilisers, crude oil, coal and electricity production amid the West Asia conflict, as per official data released on Monday.</p><p>Fertiliser production in March was 24.6 per cent lower when compared with the same month last year. This dragged the overall production for the full year 2025-26 into negative over the previous year.</p><p>Crude oil production in March was 5.7 per cent down year-on-year while coal output dipped by 4 per cent, as per data released by the Ministry of Commerce and Industry.</p><p>The core sector growth as measured by the Index of Eight Core Industries (ICI) had posted a growth of 2.8 per cent in February. The eight core sectors, which include coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, account for 40.27 per cent weight of items included in the Index of Industrial Production (IIP).</p><p>According to ICRA, the weak core sector may drag IIP growth in March to 1.0-2.0 per cent from 5.2 per cent recorded in February.</p>.Core sector growth rises to 4-month high in December.<p>The average growth in core sector in 2025-26 stood at 2.6 per cent, which is the lowest in five years. Barring cement (8.6 per cent), electricity (0.9 per cent) and steel (9.1 per cent) all other sectors contracted in FY26.</p><p>Disruption in gas supply due to the West Asia conflict has badly hit fertiliser production in March.</p><p>“Fertiliser output in March 2026 declined by 24.6 per cent, the fastest decline in 2011-12 base data. The gas supply to fertiliser industry was reduced to 70-75 per cent in March 2026 due to Iran war, which is now increased to around 95 per cent. This is likely to have an adverse impact on fertilizer production even in April 2026,” said Devendra Pant, Chief Economist, India Ratings and Research.</p><p>The disruption in global supply prompted the boost in local production of natural gas in the country. Natural gas production in March was 6.4 per cent higher when compared with the same month last year.</p><p>“The growth in steel and cement output also weakened in March 2026 relative to February 2026, suggesting that construction activity slowed in the month,” said Aditi Nayar, Chief Economist, ICRA. </p>