India’s Core Sector Output Growth Hits Series High of 7.9% in September
- IBEF
- October 22, 2026
India’s core sector output growth rose to a series high of 7.9% in September, compared with 5.9% in August and 3.1% in September last year, driven by strong expansion in coal, electricity, refinery products and iron ore, alongside a favourable base effect. The September reading was the fourth based on the revised index, with 2022-23 as the base year, replacing 2011-12. The updated series also includes iron ore, taking the number of core industries to nine. According to Chief Economist, Bank of Baroda, Mr. Madan Sabnavi, core sector growth showed buoyancy in infrastructure where the government has been spending. Expenditure on roads boosted cement demand, while railway outlay supported iron and steel output.
Refinery products recorded their strongest growth in the new series, rising 10.3% year-on-year in September, up from 5.6% in August. Coal production rebounded with 10.7% growth after a contraction of 3.8% in the previous month, while iron ore output rose 18.4%, compared with 5.5%. Electricity generation growth moderated to 11.4% from 13.1% in August. Steel output grew 4.9%, compared with 3.5%, while cement production rose 9.8%, lower than 11.7% in the previous month. Fertilizer production continued to contract, declining 11.7%, while natural gas and crude oil output contracted 4.6% and 1.4%, respectively. The core sector has 40.27% weight in the Index of Industrial Production (IIP). Bank of Baroda projected IIP growth of 7.5-8.5% in September, while ICRA expected it to moderate to 6-7% from 8% in August.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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