- India's core sector growth rose to 7.9% in September, led by coal and electricity
- Growth exceeded August's revised 5.9%, marking highest since April 2024
- Coal production rebounded 10.7% after August's 3.8% contraction
India's core sector growth accelerated to 7.9% in September, driven by a strong recovery in coal production and robust output across electricity, refinery products and iron ore, according to government data released on Wednesday.
The growth in the eight core industries, which account for about 40% of India's Index of Industrial Production (IIP), was higher than the revised 5.9% expansion recorded in August.
According to Reuters, the September reading marked the highest growth since April 2024 under the revised data series, which uses 2022-23 as the base year.
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The latest figures point to improved momentum in key infrastructure-linked industries, although weakness in crude oil, natural gas and fertiliser production continued to weigh on the overall performance.
Electricity generation rose 11.4% year-on-year in September, easing from the revised 13.1% growth recorded in August. Output of petroleum refinery products increased 10.3%, accelerating from 5.6% in the previous month. The improvement in refinery production provided a significant boost to the overall core sector index.
Coal production grew 10.7% in September, reversing a 3.8% contraction in August. Iron ore output also recorded a sharp improvement, rising 18.4% compared with 5.5% growth in the preceding month.
Cement production increased 9.8% year-on-year, although the pace of growth moderated from 11.7% in August. Steel output rose 4.9%, up from 3.5% growth in the previous month, indicating an improvement in another key industry linked to construction and infrastructure activity.
Not all sectors recorded an improvement. Crude oil production declined 1.4% in September, narrowing its contraction from 3.6% in August.
Natural gas output fell 4.6%, compared with a 4.9% decline in the previous month. Fertiliser production contracted 11.7% in September, following a 12.4% fall in August. The continued decline in these three segments highlights the uneven nature of the recovery across the core industries.
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For April-September, the first half of the current financial year, core sector output grew 5.1%, compared with 2.5% in the corresponding period last year, according to the data.
The eight industries tracked in the index are coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity. Their performance is closely watched as an indicator of industrial activity and infrastructure demand.
While September's acceleration marks a strong improvement over August, the coming months will help determine whether the momentum can be sustained across sectors and translate into broader industrial growth.
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