Growth of eight core sectors halved to 2.3% in February, before West Asia crisis began

India’s halfway concern maturation slowed sharply adjacent earlier the situation successful West Asia began, with authorities information showing maturation successful the 8 halfway sectors of the system slowing to a three-month debased of 2.3% successful February 2026.

This slowdown successful February, arsenic shown by the information connected the Index of Eight Core Industries released by the Ministry of Commerce and Industry connected Friday, comes astatine a clip erstwhile economists and policymakers are expecting a further slowdown successful March successful effect to the proviso and export constraints brought connected by the warfare successful West Asia. The information besides shows that home accumulation of oil, gas, and petroleum products had been shrinking for months, which is present compounded by the outer proviso constraints.

“Even earlier the commencement of the West Asia crisis, the maturation of the halfway assemblage output successful India had slowed to a three-month debased of 2.3% successful February 2026,” Aditi Nayar, Chief Economist astatine ICRA said. “The sequential halving successful year-on-year maturation from 4.7% successful January 2026 was comparatively broad-based, with lone 2 sectors, namely cement and alloy eking retired a year-on-year emergence that was supra 3.5%.”

The cement assemblage grew by 9.3% successful February 2026, the champion show retired of the 8 sectors measured successful the index. However, this was a four-month low, with the assemblage breaking a three-month streak of double-digit growth. 

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The alloy sector, too, saw comparatively robust growth, but slower than erstwhile months, astatine a three-month debased of 7.2% successful February 2026.

Notably, the information shows that the crude oil, LPG and LNG constraints owed to the West Asia situation person travel astatine a peculiarly atrocious clip for India, with home accumulation of these items having contracted for aggregate months — a inclination that continued into February arsenic well. 

The crude lipid assemblage contracted 5.2% successful February 2026, the sixth consecutive period of contraction. The earthy state assemblage contracted by 5%, continuing a 20-month streak of contraction. 

The refinery products assemblage contracted 1% successful February 2026. The assemblage faced contraction successful six retired of the 11 months of this fiscal twelvemonth for which determination is data. 

Growth successful the fertilisers assemblage slowed to a five-month debased of 3.4% successful February 2026, though this was connected a precocious basal of 10.2% successful February past year. Growth successful the ember assemblage slowed to a three-month debased of 2.3%, portion that successful the energy assemblage slowed to a three-month debased of 0.5%. 

“The longer that the situation persists, resulting successful higher substance prices and tighter availability, the larger the downside volition beryllium for India’s GDP maturation successful FY2027, notwithstanding the buffers provided by resilient home demand,” Ms. Nayar said.