India’s infrastructure output declined by 0.4% year-on-year in March 2026, following an upwardly revised 2.8% increase in February. This marked the first contraction since October of the previous year and only the fourth monthly decline since early 2021. The downturn reflected the immediate impact of the energy shock stemming from the outbreak of war in the Middle East, which led to energy shortages across Asia and a sharp rise in petrochemical prices.
Fertilizer production slumped by 24.6% as producers struggled to secure normal supplies of natural gas feedstock. Output also fell in coal (-4%) and crude oil (-5.7%). By contrast, steel (2.2%) and cement (4%) production continued to grow, supported by sustained demand for construction materials.
