India Core Sector Records Strong Growth in September 2026

India Core Sector Records Strong Growth in September 2026

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Key takeaways

  • India core sector output rose to 7.9% in September 2026, setting the highest growth pace under the new index series since April 2024.
  • The growth spurt was led by massive output gains in iron ore (18.4%), electricity (11.4%), coal (10.7%), and refinery products (10.3%).
  • Following the Praveen Mahto Committee recommendations, the base year for the Index of Core Industries (ICI) was updated from 2011-12 to 2022-23.
  • With the addition of iron ore, the Index of Core Industries now tracks a total of 9 core infrastructure sectors.
  • The monthly Index of Core Industries data is brought out by the Office of the Economic Adviser (OEA) under DPIIT.

Why in News

  • India core industrial output expanded by 7.9% in September 2026.
  • This performance marks the highest growth rate recorded under the updated series since April 2024.

Major Drivers

  • Growth was mainly driven by iron ore output which jumped by 18.4%.
  • The electricity sector performed strongly with a growth rate of 11.4%.
  • Output in the coal sector expanded by 10.7% during this month.
  • The refinery products segment also registered a solid growth of 10.3%.

About Core Industries

  • The Index of Core Industries (ICI) measures the activity levels of fundamental infrastructure sectors to evaluate national industrial performance.
  • The Office of the Economic Adviser (OEA) under the Department for Promotion of Industry and Internal Trade (DPIIT) compiles and releases this data.
  • This index is published on a monthly basis to monitor industrial production trends across primary infrastructure sectors.
  • Following the Praveen Mahto Committee suggestions, the base year was updated from 2011-12 to 2022-23, adding iron ore as the ninth component.
  • The petroleum refinery products sector forms one of the main components within this index.
  • The electricity sector represents a primary segment of the core framework.
  • The steel industry serves as an essential component of the index.
  • The coal sector is tracked as a foundational core industry.
  • The crude oil sector contributes directly to the overall industrial calculation.
  • The natural gas segment forms a critical core sector.
  • The cement sector is evaluated to track basic construction activity.
  • The fertilizers industry acts as a crucial core sector supporting agriculture.
  • The iron ore sector was officially integrated as the ninth core industry under the revised base year.