India’s eight core industries grew 7.9 percent in September, the highest in 12 months. Iron ore, electricity, and coal led this surge, helping the economy recover from August. However, fertilisers, natural gas, and crude oil fell as the West Asia war disrupted supplies. Seven sectors showed better performance during the month.
Iron ore, electricity and coal led the surge, but fertilisers, natural gas and crude oil kept shrinking, with the West Asia war still weighing on supplies
India's eight core industries grew 7.9 percent in September from a year earlier, accelerating from 5.9 percent in August, according to government data released on Wednesday. This is the strongest figure in the last 12 months.
"Core output rose the fastest pace in the new series, with a favourable base supporting the improvement from the upward-revised 5.9 percent growth seen in August 2026," said Aditi Nayar, Chief Economist, ICRA, adding that 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.
Iron ore posted the sharpest expansion at 18.4 percent, followed by electricity at 11.4 percent, coal at 10.7 percent, refinery products at 10.3 percent and cement at 9.8 percent. Steel grew a more modest 4.9 percent. Coal and refinery products swung sharply from August, when coal contracted 3.8 percent and refinery output rose 5.6 percent.
Three sectors, however, fell. Fertilisers contracted 11.7 percent, natural gas 4.6 percent and crude oil 1.4 percent. Fertiliser output has now been dropping each month since March, as the war in West Asia disrupted supplies, when it fell 24.6 percent. Natural gas and crude oil have contracted in every month since September last year.