India core sector growth hits 30-month high of 7.9% in September 2026
Synopsis
India's core sector just hit its fastest growth pace in two and a half years — 7.9% in September 2026 — with iron ore, newly added to the index, surging 18.4%. The half-year cumulative rate has nearly doubled versus last year, pointing to a genuine infrastructure-driven industrial upturn rather than a one-month blip.
Key Takeaways
India's core sector growth hit a 30-month high of 7.9% in September 2026 , per Ministry of Commerce and Industry data.
Iron ore — newly added to the index — led with 18.4% growth; the tracked sectors have expanded from eight to nine .
Electricity grew 11.4% ; coal and refinery products each rose 10.7% ; cement up 10.3% ; steel up 4.9% .
Fertilisers , natural gas , and crude oil posted negative growth in September.
August 2026 ICI revised upward: index from 119.2 to 120.4 ; growth rate from 4.8% to 5.9% .
Cumulative April–September 2026 growth stands at 5.1% , nearly double the 2.5% of the same period last year.
India's core sector industries posted a 30-month high growth rate of 7.9% in September 2026 on a year-on-year basis, according to data released by the Ministry of Commerce and Industry on 21 October 2026. The surge was driven by strong performances across iron ore, electricity, coal, refinery products, cement, and steel, signalling a broad-based acceleration in infrastructure-linked industrial activity.
Sector-wise Performance
Iron ore led the pack with an extraordinary 18.4% jump in production during September, the highest single-sector gain in the revised index. Notably, iron ore has been added to the list of core industries for the first time under the revised Index of Core Industries (ICI) with base year 2022-23, expanding the tracked count from eight to nine sectors. Electricity generation grew by 11.4%, while both coal production and refinery products output each rose by 10.7%, the latter buoyed by rising demand for petroleum goods amid higher economic activity. Cement clocked a robust 10.3% growth, and steel production expanded 4.9%, supported by sustained government investment in large-ticket infrastructure projects including highways, ports, and railways.
Where Growth Fell Short
Not all sectors kept pace. Fertilisers, natural gas, and crude oil recorded negative growth in September, tempering an otherwise buoyant headline print. These three segments have faced persistent headwinds from supply constraints and subdued upstream activity, according to the ministry data.
August Data Revised Upward
The final index figure for August 2026 was revised upward from 119.2 to 120.4, pushing the year-on-year growth rate for that month from 4.8% to 5.9%. The revision reflects updated production reporting from sector ministries and is a standard feature of the ICI release cycle.
April–September 2026 Cumulative Trend
The cumulative growth rate of the Index of Core Industries for the April–September 2026 period now stands at 5.1%, sharply higher than the 2.5% recorded in the corresponding period of the previous year. This near-doubling of the half-year growth rate underscores what the ministry describes as an acceleration in infrastructure industry output. This comes amid heightened government capital expenditure, which has been a consistent demand driver for cement, steel, and power across successive quarters.
New Index Series and What Changes
The Office of Economic Adviser under the Department for Promotion of Industry and Internal Trade (DPIIT) introduced the revised ICI series with Base Year 2022-23 in July 2026, replacing the earlier series anchored to 2011-12. The rebasing and the inclusion of iron ore reflect structural changes in India's industrial economy over the past decade and are expected to provide a more contemporary benchmark for tracking core sector momentum going forward.
Point of View
But the more telling number is the half-year cumulative: 5.1% versus 2.5% a year ago. That near-doubling suggests government capex is finally transmitting into measurable industrial throughput rather than stalling at project-award stage. The caveat is the drag from fertilisers, natural gas, and crude oil — all three are upstream inputs, and sustained weakness there could cap the next leg of growth. The rebased ICI also makes trend comparisons with pre-2022 data less straightforward, which analysts will need to flag when contextualising the 'high since when' framing.
NationPress
21 Oct 2026
Frequently Asked Questions
What is the Index of Core Industries (ICI) and why does it matter?
The Index of Core Industries tracks output across key infrastructure-linked sectors — now nine in total — including coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, electricity, and iron ore. It is a leading indicator of broader industrial production and accounts for a significant share of India's IIP, making it a key gauge of economic momentum.
Why did India's core sector growth surge to a 30-month high in September 2026?
Growth hit 7.9% year-on-year in September 2026, driven by strong output in iron ore (up 18.4%), electricity (up 11.4%), coal and refinery products (each up 10.7%), and cement (up 10.3%). Sustained government investment in highways, ports, and railways kept demand buoyant for cement and steel.
Which sectors saw negative growth in September 2026?
Fertilisers, natural gas, and crude oil posted negative year-on-year growth in September 2026. These sectors have faced supply-side constraints and subdued upstream activity, partially offsetting the headline strength.
What changed in the revised ICI series introduced in 2026?
The Office of Economic Adviser under DPIIT released a revised ICI series with Base Year 2022-23 in July 2026, replacing the older 2011-12 base. Iron ore was added as a new sector, increasing the tracked core industries from eight to nine. September 2026 was the first full month reported under this new series.
What does the April–September 2026 cumulative growth rate indicate?
Cumulative core sector growth for April–September 2026 stands at 5.1%, nearly double the 2.5% recorded in the same period of the previous year. This acceleration points to a broad-based pickup in infrastructure industry output, consistent with elevated government capital expenditure through the first half of the fiscal year.
