India's core sector spikes while oil, gas and fertiliser output slump in FY27
India's core sector grew 7.9% in September, but crude oil, natural gas and fertiliser output posted negative year-on-year growth throughout the first half of FY27.
September saw India's core sector output climb to a new 2022-23 series high of 7.9%, masking weakness in three key industries. Crude oil, natural gas and fertilisers all recorded declines compared with the same month a year earlier, and each remained below the 2022-23 base level for most of the first half of FY27. Crude oil output was under the base in all six months, while natural gas surpassed the base in only one month and fertilisers did so in four months.
The cumulative year-on-year growth for these sectors has been negative, indicating persistent lag despite overall sector expansion. This pattern suggests structural challenges for India's energy and agricultural inputs amid broader economic growth.
Why it matters
The slowdown in oil, gas and fertiliser production could hinder India's energy security and agricultural supply despite overall economic growth.
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