Output hit by contraction in oil, gas and refinery products; growth outlook faces fresh risks.

Core Infrastructure Growth Slips to 3-Month Low of 2.3% in February.

India’s core infrastructure sector growth slowed to a three-month low of 2.3% in February, weighed down by a contraction in crude oil, natural gas and refinery products output, according to government data. The eight core sectors had expanded by 3.4% in the same month last year. Growth in fertiliser, cement and electricity production moderated to 3.4%, 9.3% and 0.5%, respectively, during the month, while coal and steel continued to post healthy expansion. On a cumulative basis, infrastructure output grew 2.9% during April–February, lower than 4.4% recorded in the corresponding period of the previous financial year. Commenting on the data, Aditi Nayar, Chief Economist at Icra Ltd, said that core sector growth had slowed even before the onset of the West Asia crisis. As a result, the Index of Industrial Production growth is expected to moderate to around 4% in February 2026 from 4.8% in January. She cautioned that prolonged geopolitical tensions could push up fuel prices, tighten supplies and pose downside risks to India’s GDP growth in FY2027, despite resilient domestic demand.