India’s core infrastructure output grew 7.9% in September 2026, the fastest pace under the new series, driven by strong growth in iron ore, electricity, coal, refinery products and cement.
New Delhi, October 21 — Production across India’s key infrastructure industries rose 7.9% year-on-year in September 2026, marking the fastest growth recorded under the new core-sector series.
According to data released by the Commerce and Industry Ministry, core-sector growth accelerated from 5.9% in August 2026 and was also significantly higher than the 3.1% growth recorded in September last year.
Among the nine sectors included in the new series, iron ore posted the strongest growth at 18.4%.
Electricity output increased 11.4%, coal production rose 10.7%, while refinery products expanded 10.3% year-on-year.
Cement production increased 9.8%, while steel output grew 4.9% during the month.
However, some sectors remained under pressure.
Fertiliser production declined 11.7%, natural gas output fell 4.6%, while crude oil production dropped 1.4% compared with September 2025.
For the first half of the current financial year, April-September 2026, cumulative core-sector growth stood at 5.1%, compared with 2.5% in the same period a year earlier.
The new series for the core industries was introduced in June.
The government shifted the base year to 2022-23 and expanded the index from eight sectors to nine sectors by adding iron ore.
ICRA Chief Economist Aditi Nayar said the improvement in September was relatively broad-based, with seven of the nine sectors showing better performance compared with August.
Coal and iron ore recorded particularly strong year-on-year growth, helped partly by a lower base.
Nayar also noted that the sequential increase in coal production was strong at a time when stocks at power plants remained low.
ICRA now expects full-year electricity growth of 8.5%, higher than its baseline GDP growth forecast of 7.1% for the current fiscal.
Healthy finished-steel consumption also indicates that construction activity remained strong during September.
Despite the strong core-sector numbers, ICRA expects Index of Industrial Production growth to moderate to 6-7% in September, from 8% in August, because of a higher base affecting non-core industries.
The September data suggests that infrastructure activity remained robust, supported by energy demand, construction and stronger mineral production.
