Core industries grow record 7.9% in September on coal and refining rebound

India's core industries grew a record 7.9% in September, led by coal, refineries and iron ore -- the fastest since April 2024 under the new series. But with first-half growth averaging just 1%, economists caution against reading too much into one month.

India's core industrial growth accelerated to a historic high of 7.9 per cent in September -- the fastest since at least April 2024, the earliest month covered by the new Index of Core Industries series. The rebound was driven by a turnaround in coal, which grew 10.7 per cent, alongside refinery products at 10.3 per cent and iron ore at 18.4 per cent.

Construction-linked sectors did well too, with cement growing 9.8 per cent and steel 4.9 per cent, while electricity output rose 11.4 per cent. Not every component shared in the strength: crude oil production contracted 1.4 per cent and natural gas fell 4.6 per cent, showing the headline number was driven by sector-specific dynamics rather than uniform growth.

The strong reading stands in contrast to a first-half average growth of just 1 per cent, prompting economists to treat it as a sharp single-month rebound rather than confirmation of a sustained new trajectory. Analysts said the low-base effects in coal and a refining bounce were the main engines, while base comparisons with the old series are not statistically clean.