India’s Core Industries Grow 7.9% in September 2026

Context:

Recently, India’s Index of Core Industries (ICI) registered 7.9% year-on-year growth in September 2026, a 30-month high and the strongest growth under the revised series with 2022–23 as the base year. Growth accelerated from 5.9% in August 2026 and 3.1% in September 2025.

What Are Core Industries?

• • • Core industries are fundamental sectors that supply essential inputs to other industries and infrastructure projects. Their performance influences manufacturing, construction, energy availability and overall economic activity.
    • The revised Index of Core Industries includes nine sectors, following the addition of iron ore to the earlier basket of eight industries. The revised series uses 2022–23 as its base year, replacing the earlier 2011–12 base year.
    • The index is compiled by the Office of the Economic Adviser under the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.

Nine Core Industries and Their Weights:

Sector-Wise Performance in September 2026:

Six of the nine industries recorded positive growth, while fertilisers, natural gas and crude oil contracted. Iron ore was the fastest-growing sector.

Significance for the Indian Economy:

• • • Infrastructure development: Growth in steel, cement and electricity supports roads, railways, ports, housing and industrial projects.
    • Investment and production: Rising core-sector output can indicate stronger industrial demand and support private investment.
    • Energy security: Higher coal and refinery output can support domestic energy requirements, although crude oil and natural gas remain areas of concern.
    • Leading indicator: Core industries are important inputs to the Index of Industrial Production (IIP), accounting for roughly 40% of the IIP basket under the established framework.

Challenges:

• • • Persistent contraction in fertilisers and natural gas.
    • Dependence on imported crude oil and exposure to global price volatility.
    • Environmental costs associated with coal and resource-intensive industries.
    • Uneven performance across sectors.
    • The need to sustain industrial growth and translate it into employment.

Way Forward:

India should improve domestic energy exploration, diversify energy sources, strengthen industrial logistics and encourage cleaner production technologies. Greater investment in infrastructure, resource efficiency and sustainable manufacturing can help maintain growth while reducing environmental costs.

Conclusion:

The 7.9% growth in September 2026 signals renewed momentum in India’s core industrial sectors. However, persistent weakness in fertilisers, natural gas and crude oil highlights the need for balanced growth, stronger energy security and sustainable industrial development.