India’s eight core industries recorded strong growth in September 2026, driven by higher electricity generation, steel production and cement output, signalling a recovery in industrial activity.
Highlights
- India’s eight core industries grew 7.9% in September 2026, the fastest pace in 11 months.
- Core sector growth accelerated sharply from 3.1% in August.
- Electricity generation jumped 10.3%, compared with a 13.1% decline in August.
- Steel output increased 18.4%, while cement production rose 11.4%.
India’s Core Sector Growth Surges to 7.9% in September, Highest in 11 Months
New Delhi, October 22: India’s industrial economy showed signs of a strong recovery as output across eight core infrastructure industries increased by 7.9% in September 2026, marking the fastest growth in 11 months. The sharp acceleration from 3.1% in August was supported by improved electricity generation, higher steel production and a recovery in cement output.
According to government data released by the Department for Promotion of Industry and Internal Trade (DPIIT), the September performance represents a significant improvement in industrial activity after several months of uneven growth.
Electricity and Steel Lead Recovery
Electricity generation emerged as one of the major contributors to the recovery, expanding by 10.3% in September after contracting 13.1% in August.
Steel production also recorded strong growth of 18.4%, compared with 5.5% in August. The increase was supported by demand from construction, infrastructure development and other industrial sectors.
Cement production rose 11.4% in September, accelerating from 1.1% in August. The improvement reflected stronger demand from housing and infrastructure projects.
Coal production also returned to positive territory, increasing 3.8% after declining 10.7% in August.
Industrial Activity Gains Momentum
The eight core industries include coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity. These industries account for approximately 40% of the Index of Industrial Production (IIP), making their performance an important indicator of broader industrial activity.
The September recovery was particularly significant because several industries had experienced weak output in the previous month.
The improvement in electricity generation, steel and cement production suggests that industrial demand strengthened during the month.
However, the recovery was not uniform across all sectors. Crude oil and natural gas continued to face challenges, highlighting uneven performance within the industrial economy.
Economists Expect Stronger Industrial Growth
Economists believe the improved core sector performance could support stronger industrial production figures for September.
According to the report, Pantheon Macroeconomics chief emerging Asia economist Miguel Chanco said the September recovery was encouraging, although broader economic conditions remained uncertain.
Bank of Baroda chief economist Madan Sabnavis also indicated that stronger infrastructure activity and improved industrial demand could support overall growth.
The latest figures suggest that India’s industrial sector entered the final months of 2026 with renewed momentum, supported by infrastructure spending, improving electricity demand and stronger construction-related activity.
However, sustaining this growth will depend on continued investment, stable demand and consistent performance across major industries.
