India's core sector grows 1.7% in April, lifted by steel and cement

New Delhi, May 20. Growth in India's eight core industries climbed to 1.7% in April. According to official data, the uptick was driven largely by higher steel and cement output.

What the core sector is

The core sector comprises coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity. These eight industries carry a weight of about 40% in the Index of Industrial Production (IIP), making their movement an important gauge of the economy's health.

What lifted the numbers

Strong demand for steel and cement, on the back of brisk construction activity, supported overall growth. Sustained investment in infrastructure projects and the housing sector remains the chief source of demand for both segments.

The wider picture

Rating agency ICRA has projected 3-5% growth in domestic two-wheeler volumes for FY27, pointing to a recovery in rural demand. In the markets, investors are keeping a close watch on benchmark indices including the Sensex and Nifty as they weigh economic indicators and global cues.

The road ahead

Economists say the monsoon's performance, government capital spending, and global energy prices will shape industrial growth in the coming quarters. If the pace of infrastructure spending holds, the steel and cement segments could remain engines of growth.