Core Sector Output Reaches 30-Month Peak of 7.9% in September 2026
India's core sector growth surged to a 30-month high, driven by significant increases in coal and electricity production.
Core sector output grew by 7.9% in September 2026.
Coal production rebounded with a 10.7% increase.
Fertiliser production continued to decline for the seventh month.
In September 2026, India's core sector output growth reached a remarkable 7.9%, marking the highest level in 30 months. This surge was primarily fueled by a robust recovery in coal production and sustained growth in electricity generation and refinery products, as reported in the latest data release.
The growth rate for September surpassed the revised figure of 5.9% from August and the 3.1% recorded in the same month last year, indicating a significant improvement in the core industries. The Index of Core Industries (ICI), which tracks output across nine key infrastructure sectors, revealed that six of these sectors experienced growth, while natural gas, crude oil, and fertilisers continued to face declines.
Coal production saw a substantial increase of 10.7% in September, reversing the previous month's contraction of 3.8%. This turnaround is notable, especially considering the earlier weakness in coal output during the financial year, which saw declines in both April and May. Additionally, electricity generation expanded by 11.4%, maintaining double-digit growth for the fourth consecutive month, although it slightly moderated from 13.1% in August. Refinery products also showed strong performance with a 10.3% increase, nearly doubling the growth rate of 5.6% from the previous month.
Despite the overall positive trend, three sectors continued to struggle. Fertiliser production contracted by 11.7% in September, marking its seventh consecutive month of decline, although this was a slight improvement from the 12.4% drop in August. Natural gas output fell by 4.6%, extending its ongoing contraction, while crude oil production decreased by 1.4%, a smaller decline compared to the 3.6% drop in August.
The growth in September significantly boosted the cumulative core sector growth to 5.1% for the first half of the financial year (April–September 2026), more than doubling the 2.5% growth recorded during the same period last year. This positive trend indicates a potential recovery in the industrial sector, which could have broader implications for the Indian economy moving forward.
