Production of fertiliser suffered the most, dropping 24.6% compared to the same month last year. (Credits: Pexels)In one of the first signs of the impact of the West Asia war on Indian industries, the output of the eight core industries contracted by 0.4% in March, the Ministry of Commerce & Industry said on Monday. Production of fertiliser suffered the most, dropping 24.6% compared to the same month last year.This is the first time since October 2025 that the output of the eight core industries has fallen compared to a year ago, with the fall in output being the most since August 2024, when it had declined by 1.5%. In February, output of the eight core industries had risen 2.8%.For 2025-26 as a whole, the output of India’s eight core industries rose a mere 2.6%, marking the worst performance since the pandemic-hit year of 2020-21, when production had fallen 6.4%.Of the eight core industries – coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity – half of them witnessed lower production in March compared to a year ago. Apart from fertilisers, crude oil output fell 5.7% – the seventh month in a row it was down on a year-on-year basis. Meanwhile, coal production declined 4%, the first such fall in five months. This is the first time in data going back till April 2012 that India’s coal output has fallen on a year-on-year basis in March.The 24.6% fall in fertiliser output in March is the largest on record, with the US and Israel’s war with Iran and the latter’s subsequent retaliation, including the closure of the Strait of Hormuz and attacks on Gulf nations, having led to sharply higher energy prices and disruptions in the supply of key inputs for the petrochemicals sector. Data released last week showed the wholesale price of ammonia gas in India was 22% higher in March compared to February – the highest month-on-month rise as per data going back till 2012. Ammonia is used to make fertilisers.The fourth industry to see lower production in March was electricity, with its output down 0.5%.Coal output and electricity generation in March likely suffered due to the above-normal rains during the month. Data from the India Meteorological Department shows that, in March, the country as a whole saw 14% more rainfall than normal.Story continues below this adOf the four eight core industries that reported a rise in production, petroleum refinery products posted a minor year-on-year increase of 0.1%. Steel and cement output rose 2.2% and 4%, respectively. However, the production of natural gas surged 6.4%, the most in 22 months. This is the first time since June 2024 that India’s natural gas production has increased.Siddharth Upasani is a Deputy Associate Editor with The Indian Express. He reports primarily on data and the economy, looking for trends and changes in the former which paint a picture of the latter. Before The Indian Express, he worked at Moneycontrol and financial newswire Informist (previously called Cogencis). Outside of work, sports, fantasy football, and graphic novels keep him busy. ... Read More © The Indian Express Pvt LtdTags:IIP dataindia industrial output