India's core sector output increased by 7.9% in September 2026, showing a significant improvement from the previous month. This growth was mainly due to strong performances in coal, refinery products, electricity, and iron ore production. However, some sectors like fertilisers, natural gas, and crude oil experienced declines during the same period.
- Core sector output growth in September 2026 was 7.9%, higher than August's 5.9%.
- Iron ore production rose by 18.4%, the highest among core industries.
- Electricity output increased by 11.4%, while coal grew by 10.7%.
- Refinery products expanded by 10.3%, and cement grew by 9.8%.
- Fertiliser production fell by 11.7%, natural gas by 4.6%, and crude oil by 1.4%.
- Cumulative core sector growth for April–September FY27 was 5.1%, up from 2.5% the previous year.
What are the core industries contributing to this growth?
The eight core industries include coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity. These sectors together make up 40.27% of the Index of Industrial Production (IIP) weight. In September 2026, iron ore production led the growth with an 18.4% increase, followed by electricity at 11.4%, coal at 10.7%, and refinery products at 10.3%. Cement and steel also showed positive growth rates of 9.8% and 4.9%, respectively.
How did the individual sectors perform in September 2026?
Iron ore production surged significantly by 18.4%, a sharp rise from 5.5% in August. Electricity output grew by 11.4%, slightly lower than August's 13.1%. Coal production recovered strongly, increasing by 10.7% after a contraction of 3.8% in August. Refinery products output accelerated to 10.3% growth from 5.6% the previous month. Cement production rose by 9.8%, a slight moderation from August's 11.7%. Steel production also improved to 4.9% growth from 3.5% in August.
On the downside, fertiliser production declined by 11.7%, following a 12.4% drop in August. Natural gas output fell by 4.6%, and crude oil production decreased by 1.4% during September.
What is the overall trend in core sector growth for the fiscal year so far?
The cumulative growth rate of the Index of Core Industries (ICI) for April to September 2026 stands at 5.1%, which is double the 2.5% growth recorded during the same period last year. This indicates a strengthening industrial sector and improving economic activity in the country.
What revisions were made to previous data?
The final index for August 2026 was revised upward to 120.4 from the provisional estimate of 119.2. Correspondingly, the year-on-year growth rate for August was revised to 5.9% from the earlier estimate of 4.8%. These revisions reflect stronger industrial performance than initially reported.
When will the next data update be available?
The provisional index for October 2026 is scheduled to be released on November 20, 2026, according to the commerce and industry ministry.
