India’s core sector growth accelerated to 7.9% in September 2026 from 5.9% in August, with electricity, coal, refinery products, cement and iron ore recording strong year-on-year gains, according to data released by the Ministry of Commerce and Industry on Wednesday.
The Index of Eight Core Industries tracks coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity. Together, these sectors account for 40.27% of the weight of the Index of Industrial Production, making the index a key indicator of industrial and infrastructure activity.
Iron ore production recorded the highest growth among the sectors covered, rising 18.4% in September from a year earlier. Electricity output increased 11.4%, while coal production grew 10.7%. Refinery products rose 10.3%, cement output increased 9.8% and steel production expanded 4.9%.
The September performance points to stronger activity across several inputs linked to construction, manufacturing, power supply and transport infrastructure. Cement, steel and iron ore are closely connected to building and infrastructure works, while coal, electricity and refinery products support industrial and logistics operations. The ministry said coal, refinery products, steel and iron ore have been the major drivers of overall core sector growth in recent months.
The gains were not uniform across all eight industries. Fertiliser production declined 11.7% year-on-year in September, while natural gas output contracted 4.6%. Crude oil production fell 1.4% during the month.
The cumulative growth rate of the core industries index stood at 5.1% during April-September 2026, compared with 2.5% in the corresponding period of the previous year, according to provisional data. The comparison indicates that the combined performance of these infrastructure-linked sectors has improved during the first half of the financial year, although the latest figures remain subject to revision.
The ministry also revised the final index for August 2026 upwards to 120.4 from its earlier provisional estimate of 119.2. As a result, the year-on-year growth rate for August was revised to 5.9% from the earlier estimate of 4.8%.
The data provides an early measure of activity in sectors that influence construction supply chains, electricity availability and industrial production. However, the core industries index does not by itself provide a complete picture of employment, household demand or the performance of individual infrastructure projects.
The September figures are provisional. The Ministry of Commerce and Industry has scheduled the release of the index for October 2026 on November 20.
