New Delhi, 21 October: India’s core infrastructure industries recorded a 7.9 percent growth in September 2026, the highest under the new data series, driven by strong output in iron ore, electricity, coal and cement.
According to data released by the Commerce and Industry Ministry on Wednesday, growth accelerated from 5.9 per cent in August 2026 and 3.1 per cent in September last year.
Iron Ore, Electricity Lead Growth
Iron ore production surged 18.4 per cent in September, registering the strongest expansion among the nine core industries.
Electricity generation increased 11.4 per cent, while coal output climbed 10.7 per cent. Refinery products recorded 10.3 per cent growth.
Cement production rose 9.8 per cent, while steel output increased 4.9 per cent compared with September 2025.
However, fertiliser production declined 11.7 per cent, natural gas output fell 4.6 per cent and crude oil production slipped 1.4 per cent.
April-September Growth Improves
During April-September 2026, cumulative core sector growth stood at 5.1 per cent, compared with 2.5 per cent during the corresponding period last year.
The government introduced the revised core sector series in June, shifting the base year to 2022-23 and expanding coverage from eight to nine industries by including iron ore.
What Economists Say
Aditi Nayar, Chief Economist at ICRA, said seven of the nine industries recorded improved performance compared with August.
Coal and iron ore witnessed stronger annual growth, partly supported by a favourable base effect. Coal production also improved sequentially amid lower inventories at power plants.
ICRA expects electricity output to grow 8.5 per cent during FY27, exceeding its GDP growth forecast of 7.1 per cent.
Healthy finished steel consumption also indicates sustained construction activity.
However, despite stronger infrastructure output, ICRA expects September’s Index of Industrial Production (IIP) growth to moderate to 6-7 per cent from 8 per cent in August, reflecting an elevated comparison base for non-core industries.
