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Core Industries Index Grows 7.9 Per Cent in September 2026

The Index of Core Industries rose 7.9 per cent year-on-year in September 2026, up from 5.9 per cent in August, led by iron ore, electricity and coal.

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Core Industries Index Grows 7.9 Per Cent in September 2026

Why in News

On 21 October 2026 the Ministry of Commerce and Industry released the provisional Index of Core Industries for September 2026, which grew 7.9 per cent year-on-year, and the final index for August 2026 with the base year 2022-23.

The Index of Core Industries (ICI) for September 2026 expanded by 7.9 per cent over the same month a year earlier, according to provisional figures released by the Ministry of Commerce and Industry on 21 October 2026. The reading is sharply better than the 5.9 per cent growth finally recorded for August 2026, and is measured on the new base year of 2022-23.

Which sectors drove the growth

Six of the nine core sectors grew on a year-on-year basis in September 2026. Iron ore led the list, while fertilizers, natural gas and crude oil were the three sectors that contracted during the month.

SectorY-o-Y growth, September 2026
Iron Ore18.4 per cent
Electricity11.4 per cent
Coal10.7 per cent
Refinery Products10.3 per cent
Cement9.8 per cent
Steel4.9 per cent

The cumulative picture

For the first half of the financial year, the April to September 2026 period, the cumulative growth rate of the index stood at 5.1 per cent on a provisional basis. In the matching six months of the previous year the figure was only 2.5 per cent, so the index has roughly doubled its pace of expansion over the half year. The release also notes that coal, refinery products, steel and iron ore have been the main engines of overall ICI growth in recent months.

August revised upwards

The final index for August 2026 was revised from the provisional 119.2 to 120.4. With that revision the year-on-year growth rate for August moved up from 4.8 per cent to 5.9 per cent, which is why the August comparison figure quoted in this release is higher than the one published a month earlier.

How the index works

The Index of Core Industries measures output in nine infrastructure sectors — coal, natural gas, crude oil, refinery products, fertilizers, steel, cement, electricity and iron ore. A provisional index for any reference month is put out on the 20th of the following month, or the next working day if that date is a holiday; accordingly the October 2026 index is due on 20 November 2026. Because these are the industries that feed construction, power and transport, the ICI is read as an early signal of industrial momentum.

Important Facts

IndexIndex of Core Industries (ICI), provisional for September 2026
Growth7.9 per cent year-on-year
Previous month5.9 per cent in August 2026 (final)
Base year2022-23
Fastest sectorIron ore, 18.4 per cent
Sectors in declineFertilizers, natural gas and crude oil
Cumulative, April-September 20265.1 per cent, against 2.5 per cent a year earlier
Released byMinistry of Commerce and Industry
Next releaseOctober 2026 index on 20 November 2026

Exam Point of View

Remember the headline growth (7.9 per cent in September 2026), the August comparison (5.9 per cent), the base year 2022-23, the nine core sectors, the fastest grower (iron ore, 18.4 per cent), the three sectors that shrank and the cumulative April-September figure of 5.1 per cent.

Practice Questions

Frequently Asked Questions

By how much did the Index of Core Industries grow in September 2026?

By 7.9 per cent year-on-year on a provisional basis, higher than the 5.9 per cent growth finally recorded for August 2026.

Which core sector grew the fastest in September 2026?

Iron ore, at 18.4 per cent, ahead of electricity at 11.4 per cent and coal at 10.7 per cent.

Which core sectors saw output fall in September 2026?

Fertilizers, natural gas and crude oil were the three sectors that recorded negative growth during the month.

What is the base year of the Index of Core Industries now?

The index is compiled with 2022-23 as the base year, and the September 2026 figures were released on that base.

Sources