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

Account subscription benefits alongside Premium Stories, Editorials, Opinions and more.

Unlock these with Subscription

The View From India Looking at World Affairs from the Indian perspective.

First Day First Show News and reviews from the world of cinema and streaming.

Today's Cache Your download of the top 5 technology stories of the day.

Science For All The weekly newsletter from science writers takes the jargon out of science and puts the fun in!

Data Point Decoding the headlines with facts, figures, and numbers

THEdge At the cutting edge of education and careers

Health Matters Ramya Kannan writes to you on getting to good health, and staying there

Gender Agenda Stories from beyond the binary.

The Hindu On Books Books of the week, reviews, excerpts, new titles and features.

Updated - October 21, 2026 08:02 pm IST - NEW DELHI

The latest data on the Index of Core Industries shows that last month’s growth was the highest since at least April 2024.

Representative image | Photo Credit: Getty Images

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.

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.

Also read | Good foundation: on India’s strong industrial growth performance

“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.”

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.

process industry / economy, business and finance / economy (general)

Terms & conditions | Institutional Subscriber

Comments have to be in English, and in full sentences.

They cannot be abusive or personal.

Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform.

If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles.