Core industrial growth hits historic high of 7.9% in September 2026

India’s core industrial growth accelerated to a historic high of 7.9% in September 2026, driven by a turnaround in the coal sector and increased activity in the refinery products and iron ore sectors.

The latest data on the Index of Core Industries shows that last month’s growth was the highest since at least April 2024, which is the earliest month for which the new series has data.

Even though a comparison with the old series is not strictly statistically sound, it does provide some context for the current rate of growth. The growth in September 2026 was the highest in nearly three years when compared to the old series.

Coal growth hits 13-month high

Within the index, the coal sector grew 10.7% last month, albeit on a low base as it had contracted 1.1% in September last year. This was still a 13-month high for the sector.

Similarly, the refinery products sector saw growth unexpectedly accelerate to 10.3% in September, from 5.6% a month earlier. Even after including this month’s unusual growth, however, the sector’s average growth for the first half of this financial year stood at just 1%.

The iron ore sector, on the other hand, has seen strong double-digit growth for nearly a year now, and last month carried forward this trend with growth coming in at 18.4%, though this was only a two-month high.

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“Coal and iron ore output witnessed a meaningful pickup in their year-on-year growth rates in September 2026 compared to August 2026,” Aditi Nayar, chief economist at ICRA, said. “While this was aided by a low base, the sequential uptick in coal was quite strong, amid low stocks at power plants.”

Cement, steel see robust growth

The electricity sector also continued to do well, growing 11.4% last month, although this was slightly slower than the 13.1% recorded in August.

The two construction-related sectors — cement and steel — did well in September. While growth in the steel sector quickened to 4.9%, that in the cement sector came in at a relatively robust 9.8%, albeit slower than in August.

The domestic crude oil sector contracted 1.4% in September, somewhat better than the contraction of 3.6% in the previous month. The natural gas sector contracted 4.6% last month, a little better than the 4.9% contraction it saw in August.

The fertiliser sector, too, continued its streak of contractions. It contracted 11.7% in September, the seventh consecutive month of contraction.