FX.co ★ India Infrastructure Output Slows

India’s infrastructure output grew by 4.8% year-on-year in August 2026, slightly below the downwardly revised 5.0% increase recorded in July, yet still above the weaker growth rates seen in the immediate aftermath of the war in the Middle East. Expansion was driven primarily by construction-related sectors: cement output remained robust (12.5% vs 12.7% in July), while steel production strengthened (3.4% vs 1.9%) and iron ore output, though sharply lower than before, still grew (5.5% vs 29.5%).

By contrast, energy-related sectors remained under strain as the conflict fueled a surge in fuel prices and production costs for Indian manufacturers. Crude oil output contracted further (-3.6% vs -5.3%), natural gas production also fell (-4.9% vs -3.0%), and growth in refinery products slowed (2.6% vs 3.0%). In addition, soaring LNG prices paid by Asian importers weighed heavily on fertilizer production, which declined more sharply (-12.4% vs -8.0%).