Core output grows at series high of 7.9% in Sept

Benchmarks Nifty22,811.35-77.61FEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return8.7 % Invest NowFEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return18.39 % Invest NowEnter search text:

The Economic Times daily newspaper is available online now. Read Today's Paper Core output grows at series high of 7.9% in SeptET BureauLast Updated: Oct 22, 2026, 01:42:00 AM ISTSynopsis

India's core sector output growth for September recorded a remarkable 7.9%, driven largely by expansion in coal and electricity. Notably, refinery products and iron ore also contributed to this growth, supported by a favorable base effect. Coal production saw a sharp rebound with a growth rate of 10.7% following previous negative trends. Electricity generation growth declined slightly, impacted by heatwave conditions in the country.

Listen to this article in summarized format

Loading...×New Delhi: India's core sector output growth rose to a series high of 7.9% in September, driven by strong expansion in coal, electricity, refinery products and iron ore, alongside a favourable base effect, according to data released on Wednesday.

The year-on-year growth was 5.9% in August and 3.1% in September last year. "The core sector growth for September shows buoyancy in infrastructure where the government has been spending," said Madan Sabnavis, chief economist at Bank of Baroda. Expenditure on roads has boosted cement demand, while railway outlay has fed into iron and steel output, he added.

Aditi Nayar, chief economist at ratings firm ICRA, said a favourable base supported the core output growth that was the fastest since India moved to the new series. The September reading was the fourth based on the revised index with 2022-23 as the base year, replacing 2011-12. The updated series also includes iron ore, taking the number of core industries to nine.

Refinery products recorded their strongest growth in the new series, rising 10.3% year-on-year in September, up from 5.6% in August. "The rise of refinery output indicates heightened industrial activity as demand for fuel increased, with exports also supporting growth," said Sabnavis.

Live Events

Coal production rebounded sharply with 10.7% growth in September, after a contraction of 3.8% in the previous month. Iron ore output rose 18.4% compared with 5.5%. "Coal and iron ore output witnessed a meaningful pickup in their year-on-year growth rates in September compared to August; while this was aided by a low base, the sequential uptick in coal was quite strong, amid low stocks at power plants," said Nayar.

Electricity generation growth moderated to 11.4% in September from 13.1% in August. Sabnavis said heat waves were contributing to high electricity demand. Steel output grew 4.9%, the fastest pace in three months, compared with 3.5% in August. Cement production rose 9.8%, lower than 11.7% in the month before.

Fertiliser production continued to contract, declining 11.7% year-on-year in September, compared with a 12.4% fall in August. Natural gas and crude oil output also remained in the negative territory, contracting 4.6% and 1.4%, respectively. The oil complex went down as imports dominated, and higher import of fertilisers came in the way of production, said Sabnavis.

The core sector has 40.27% weight in the Index of Industrial Production (IIP). Bank of Baroda projects IIP growth of 7.5-8.5% in September, while ICRA expects it to moderate to 6-7% from 8% in August, as an elevated base is likely to weigh on growth in the non-core segment.
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onicrabank of barodaIndia core sector growthcore output September 2023infrastructure spending Indiarefinery products growthcoal production India
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onicrabank of barodaIndia core sector growthcore output September 2023infrastructure spending Indiarefinery products growthcoal production India Prime ExclusivesInvestment IdeasStock Report PlusePaperWealth Edition

• The global business of promising more

• One company, 2 words. Bond yield and CDS: Will they decide the fate of global markets?

• Business of Odd Things: Inside an industry that farms fish that nobody is meant to eat

• War's second-order effects are becoming visible in critical sectors

• US mid-term elections – Part 2: What does it mean for Trump to lose control of Congress?

• Homebuyers wait as NCLT panel picks holes in unfinished Jaypee projects

• 1
• 2
• 3

View all StoriesContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories
& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET

Unlock Access to All Exclusives with ETPrime FREE TRIAL

15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers

Trial offer expiring in00 : 05 : 00

I'd rather pay ₹2599 now

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Login using your ET Prime credentials to enjoy all member benefits

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Unlock ETPrime's Exclusive Stories Today!

Big Price Drop! Flat 40% Off

Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail OfferAvail OfferClaim NowAlready a Member? Sign In now

Need Assistance?

Connect with an ETPrime expert for personalized support and guidance

+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '

' + h3 + '

' + h4 + '

' + listing + '

'; $('#paidSCWidget').html(html); var callback = $('#paidSCWidget').attr('data-callback'); if(callback && window[callback]) { window[callback](); } customDimension.dimension72 += ' | Shown SYFT no Trial_With Missed Paywalled Articles Collection'; } else { _processNormal() } } }); } else { _processNormal(); } } catch (e) { _processNormal(); } }, function () { _processNormal(); }); //console.log('storyCollectionLoad', $); }

What’s Included with

ETPrime Membership

1Exclusive Insights That Matter

Uncover the truth with our investigative stories

Make strategic moves using the real-world case studies

Read industry-specific stories to identify emerging trends

Spot opportunities with
in-depth insights that matter

• Trump temper on H-1B visas is forcing Indians to do these things to stay put in US

  What Adani’s US indictment means for India Inc’s overseas fundraising

• Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.

  Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?

• Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?

  The problem with lab grown diamonds

• Why a falling rupee is a better option for the economy

  A list of top 20 momentum stocks that have delivered massive returns in one year

2Invest Wisely With Smart Market Tools & Investment Ideas

Alpha Trade

Get daily trade ideas from SEBI-registered research analysts.

Investment Ideas

Grow your wealth with stock ideas & sectoral trends.

Stock Reports Plus

All-in-one stock research with Stock Score, peer comparison & key signals.

BigBull Portfolio

Get to know where the market bulls are investing to identify the right stocks.

Stock Analyzer

Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.

Market Mood

Analyze the market sentiments & identify the trend reversal for strategic decisions.

Stock Talk Live at 9 AM Daily

Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.

3Stay informed anytime, anywhere with ET ePaper

ePaper - Print View

Read the PDF version of ET newspaper. Download & access it offline anytime.

ePaper - Digital View

Read your daily newspaper in Digital View & get it delivered to your inbox everyday.

Wealth Edition

Manage your money efficiently with this weekly money management guide.

TOI ePaper

Read the PDF version of TOI newspaper. Download & access it offline anytime.

Deep Explainers

Explore the In-depth explanation of complex topics for everyday life decisions.

Health+ Stories

Get fitter with daily health insights committed to your well-being.

Personal Finance+ Stories

Manage your wealth better with in-depth insights & updates on finance.

5Enjoy Complimentary Subscriptions From Top Brands

Stream new documentaries from all across the world every day.

Stories you might be interested in