Core Industries Grow 7.9% in September 2026: What Is Driving the Jump and Will It Last?
The Index of Core Industries (ICI) grew 7.9% in September 2026 compared with September 2025. This is the highest growth recorded in the new data series (base year 2022-23). Growth in August 2026 was a revised 5.9%.
The biggest gains came from iron ore (18.4%), electricity (11.4%), coal (10.7%), refinery products (10.3%) and cement (9.8%). Steel grew 4.9%.
Three industries shrank: fertilisers (−11.7%), natural gas (−4.6%) and crude oil (−1.4%).
For April to September 2026, core industries grew 5.1%, against 2.5% in the same period a year earlier.
Economists worry that part of the jump comes from temporary factors: extra electricity demand during a heat wave, and more refining of imported crude oil. Rising global crude prices, pressure on the rupee and the fact that government infrastructure spending is carrying much of the growth raise doubts about whether the pace can last.
The data was released on 21 October 2026 by the Office of the Economic Adviser (OEA) in the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.
Index of Eight Core Industries (ICI)
The Index of Core Industries (ICI), long known as the Index of Eight Core Industries, is a monthly number that shows how much the country's most basic industries are producing. These are industries like coal, electricity, steel and cement, whose products every other industry needs. If these industries are producing more, it usually means factories, construction and transport across the economy are busy too. Since July 2026, the index covers nine industries, because iron ore was added.
The 7.9% growth in September 2026 is the highest in the new 2022-23 series. Electricity, coal and refinery products together carry a big weight in the index, so their strong month lifted the whole number. But the fall in fertilisers, natural gas and crude oil, and the role of a heat wave and imported crude, are why experts question how long the momentum can last.
Index of Industrial Production (IIP)
The Index of Industrial Production (IIP) is a monthly number that shows how much India's industries are producing compared with a fixed base year. It covers mining, manufacturing, electricity and gas, and water supply and waste management. It is released every month by the National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI). Because GDP data comes only once every three months, the IIP is one of the quickest ways to check the health of the economy.
The core industries make up about a third of the IIP. So the 7.9% jump in core output in September 2026 suggests that the IIP for September, due on 28 October, will also show strong growth. Whether manufacturing outside the core sectors also picks up will decide if the industrial recovery is broad-based or only driven by power and fuel.
- Core industries growth, September 2026: 7.9% (highest in the 2022-23 series); August 2026 revised to 5.9%
- April to September 2026 cumulative growth: 5.1% (vs 2.5% a year earlier)
- September 2026 growth: iron ore 18.4%, electricity 11.4%, coal 10.7%, refinery products 10.3%, cement 9.8%, steel 4.9%
- Contracted: fertilisers −11.7%, natural gas −4.6%, crude oil −1.4%
- ICI new series: base 2022-23, nine industries (iron ore added), released July 2026
- Highest weight in new ICI: electricity 30.93%; core share in IIP: 32.88%
- ICI release: 20th of the next month (OEA, DPIIT); IIP release: 28th of the next month (NSO, MoSPI)
- IIP base 2022-23; manufacturing weight about 76%; 463 item groups