Core sector growth rises to 7.9% in September, led by iron ore
Representative image: StockSnap / Pixabay
Output of India's nine core industries grew 7.9% in September 2026, up from 5.9% in August, led by iron ore, electricity and coal, government data showed on October 21.
What Happened
Output of India's core industries grew 7.9% in September 2026 compared with September 2025, up from 5.9% in August, according to provisional data released by the Ministry of Commerce and Industry on Wednesday, October 21, 2026. Iron ore, electricity and coal led the rise, while fertiliser, natural gas and crude oil output fell. Growth for April to September 2026 stood at 5.1%, against 2.5% in the same period a year earlier.
Key Facts
- Core sector output grew 7.9% year on year in September 2026; August's growth was revised to 5.9%.
- Iron ore production grew the fastest, by 18.4%.
- Electricity generation rose 11.4% and coal output 10.7%.
- Refinery products grew 10.3%, cement 9.8% and steel 4.9%.
- Fertiliser output fell 11.7%, the steepest decline among the nine industries; natural gas fell 4.6% and crude oil 1.4%.
- Cumulative growth for April-September 2026 was 5.1%, compared with 2.5% a year earlier.
- The index now uses 2022-23 as its base year and covers nine industries, after iron ore was added to the earlier eight.
Why It Matters
The Index of Core Industries tracks the output of the basic industries that the rest of the economy runs on: coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, electricity and, since the new series began this year, iron ore. Together they make up a large share of the Index of Industrial Production, the broader measure of factory output, which is published later in the month. A strong core sector reading is therefore an early sign that industrial output overall is likely to be firm.
The September figures point to activity in construction and infrastructure. Steel, cement and iron ore are tied to roads, buildings and public works; electricity demand reflects both factories and households; and coal is still the main fuel for India's power plants. When all of these grow together, it usually means that building activity and manufacturing are both picking up after the monsoon months, when rain slows construction.
The weak spots are also telling. Fertiliser output fell by more than a tenth, which matters at the start of the rabi, or winter, sowing season, when farmers need fertiliser for crops such as wheat. Domestic crude oil and natural gas output continued to shrink, which keeps India dependent on imported energy at a time of high global oil prices.
The change in the index also needs to be kept in mind. The government moved the series to a 2022-23 base year in July 2026 and added iron ore as a ninth industry. That means comparisons with older figures from the previous series, based on 2011-12, are not exactly like for like.
| Industry | Growth in September 2026 |
|---|---|
| Iron ore | 18.4% |
| Electricity | 11.4% |
| Coal | 10.7% |
| Refinery products | 10.3% |
| Cement | 9.8% |
| Fertilisers | -11.7% |
Impact
Short-term: The strong reading raises expectations that the Index of Industrial Production for September will also show solid growth. It supports the view that the economy entered the second half of the financial year on a firm footing.
Long-term: Sustained growth in steel, cement, iron ore and power is consistent with continued spending on infrastructure. The persistent fall in domestic crude oil and gas output, however, means India will keep relying on imports for energy, which leaves the economy exposed to swings in global oil prices.
Who is affected: Companies in steel, cement, mining and power, which see demand rising; farmers, who depend on fertiliser supply for winter crops; businesses and households who pay for imported fuel; and policymakers watching growth and inflation together.
Key Takeaway
India's core industries grew 7.9% in September 2026, led by iron ore, power and coal, but falling fertiliser, gas and crude oil output show the gains are uneven.
Questions and Answers
What was India's core sector growth in September 2026?
According to provisional data released on October 21, 2026, output of India's nine core industries grew 7.9% in September 2026 from a year earlier, up from a revised 5.9% in August.
Which industries grew fastest and which fell?
Iron ore led with 18.4% growth, followed by electricity at 11.4% and coal at 10.7%. Fertiliser output fell 11.7%, natural gas 4.6% and crude oil 1.4%.
Why are there nine core industries instead of eight?
In July 2026 the government launched a new series of the index with 2022-23 as the base year and added iron ore to the earlier eight industries: coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity.
How has the core sector done so far in 2026-27?
From April to September 2026, core sector output grew 5.1%, compared with 2.5% in the same period of 2025-26.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
Sourced and fact-checked by the Peepals Global Editorial Team
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