September Core Sector Growth Eases To 3% As Coal, Crude Output Fall

India's eight core sectors grew at a pace of 3% year-on-year in September, according to the data released by the Ministry of Commerce and Industry on Tuesday.

This marks an easing in the core sector growth, after the output had grown by a 15-month high of 6.3% in August.

The slowdown in September was largely on account of the slump in the output of crude oil and coal.

Crude oil output fell by 1.3% during the month in review, as against a 2.4% rise in August. Coal output slipped by 1.2%, as against an 11.4% growth recorded in the preceding month.

Among other key sectors, natural gas output fell by 3.8% in September, as against a deceleration of 2.2% in August. Similarly, refinery products output also fell by 3.7% as against a 3% growth in the preceding month.

However, steel production maintained its robust pace, rising by 14.1% in September, after an impressive 13.6% growth in August. Similarly, cement output grew by 5.3%, almost similar as against 5.4% in the previous month.

The electricity output, though positive, halved as compared to August. The power generation grew by 2.1% as against 4.1% in the preceding month.

The output of fertilisers sector, also counted among the eight core segments, grew by 1.6% as compared to 4.6% in August.

These eight sectors comprise 40.27% of the weight of items included in the Index of Industrial Production.

In the first half of fiscal year 2026, these eight sectors have cumulatively grown by 2.9% as compared to the corresponding period of the last financial year. The output of some of the core sectors, particularly coal and electricity generation, was impacted during this period due to excessive rainfall in parts of the country, which also led to floods.