Core sector growth accelerates to 7.9% in September, fastest in new series

India’s core sector output growth accelerated to 7.9% in September, the fastest pace in the new series, from a revised 5.9% in August, supported by strong growth in iron ore, electricity, coal and refinery products.

The Index of Eight Core Industries (ICI) grew 7.9% year-on-year in September, compared with 3.1% in the same month last year, showed provisional data released by the commerce and industry ministry on Wednesday.

Cumulative growth during April-September 2026 stood at 5.1%, more than double the 2.5% expansion recorded in the corresponding period of the previous year.

Iron ore output grew 18.4% in September, followed by electricity at 11.4%, coal at 10.7%, refinery products at 10.3%, cement at 9.8% and steel at 4.9%. Fertilizers, natural gas and crude oil registered contractions of 11.7%, 4.6% and 1.4%, respectively.

The index for August was revised upwards to 120.4 from the provisional estimate of 119.2. Consequently, its year-on-year growth rate was revised to 5.9% from 4.8%. The overall index stood at 118.3 in September, compared with 109.6 a year ago.

“The uptick was broad-based, with seven of the nine sectors, barring electricity and cement, recording an improvement in their performance in September 2026 vis-à-vis August,” said Aditi Nayar, chief economist at Icra Ltd.

Nayar attributed the improvement partly to a favourable base. “Coal and iron ore output witnessed a meaningful pickup in their on-year growth rates in September 2026 compared to August 2026; while this was aided by a low base, the sequential uptick in coal was quite strong, amid low stocks at power plants,” she said.

Refinery products output expanded by a series-high 10.3% in September, compared with 5.6% in August, supporting overall core sector growth, Nayar said.

Electricity generation growth eased to 11.4% in September from 13.1% in August, although it remained strong. Nayar said the monsoon deficit supported demand during the month. Icra now forecasts full-year electricity growth at 8.5%, exceeding its baseline forecast of 7.1% for gross domestic product growth in the current fiscal year.

Cement output expanded 9.8% in September, while steel output growth was relatively muted at 4.9%. However, trends in finished steel consumption suggest that construction activity likely remained healthy during the month, Nayar said.

Despite the acceleration in core sector output, Icra expects growth in the Index of Industrial Production (IIP) to moderate to 6-7% in September from 8% in August, with an elevated base weighing on the non-core segment, she said.

The eight core industries comprise coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity. Together, they account for 40.27% of the weight of items included in the IIP.

The ministry said coal, refinery products, steel and iron ore had been the major drivers of overall core sector growth in recent months.

Harsh Kumar is a policy reporter at Mint (HT Media Group), where he covers the Ministry of Commerce and Industry along with key departments of the Ministry of Finance, including the Department of Economic Affairs (DEA) and the Department of Financial Services (DFS). With over five years of experience in business and economic journalism, he has developed strong expertise in tracking policy developments and their wider economic impact.<br><br>He has previously worked with Business Standard, Moneycontrol, and Outlook Money, where he reported extensively on banking, financial services, and the broader economy. Over the years, he has built a reputation for delivering accurate, insightful, and impactful stories, supported by a keen eye for detail and a consistent track record of breaking exclusive news.<br><br>An alumnus of Jamia Millia Islamia, Harsh closely follows regulatory changes and key economic trends shaping India’s financial and industrial landscape. His reporting aims to simplify complex policy issues for a wider audience while maintaining depth and credibility.<br><br>Outside of work, he enjoys tracking policy developments, finding scoops, and travelling, reflecting his curiosity about how economic decisions shape everyday life.

Get Latest real-time updates

Catch all the Business News , Economy news , Breaking News Events andLatest News Updates on Live Mint. Download TheMint News App to get Daily Market Updates.

✕

Wait for it…

Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.