Core sector grows 7.9% in September 2026; iron ore, electricity and coal lead

Core sector data: what happened?

Core industries are the steel, power, coal and cement that every factory, road and home depends on. When they grow fast, the rest of industry usually follows a few weeks later. That is why this index, released before the IIP, is watched so closely.

• ICI rose 7.9% in September 2026 over September 2025 (provisional), PIB, 21 Oct 2026.
• August’s index was revised from 119.2 to 120.4, lifting growth from 4.8% to 5.9%.
• Coal, refinery products, steel and iron ore have been the main drivers in recent months.
• October 2026 data will be released on 20 November 2026.

What is the Index of Core Industries?

• A monthly index by the Office of the Economic Adviser (DPIIT), Ministry of Commerce and Industry.
• It tracks basic industries: coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, electricity and, in this release, iron ore.
• The series now uses 2022-23 as its base year.
• Released on the 20th of the following month (or the next working day), ahead of the IIP.

Which industries rose and which fell in September 2026?

Which institutions and rules apply?

• Office of the Economic Adviser, DPIIT compiles the ICI.
• The IIP is compiled by the National Statistics Office (NSO), MoSPI.
• Collection of Statistics Act, 2008 gives the legal basis for official data collection.
• Base revisions follow the national statistical system’s move to newer base years.

What does the data not tell us?

• Part of the jump may be a base effect if September 2025 was weak.
• Falling crude oil and natural gas output raises import dependence.
• Fertilizer contraction can hurt rabi input supply.
• Provisional figures are often revised, as August was.

What should policy focus on?

• Push domestic oil and gas exploration under OALP and HELP.
• Keep power and coal supply steady for the winter peak and rabi season.
• Watch fertilizer production and imports before sowing.
• Use infrastructure spending to sustain cement and steel demand.

What can Prelims ask on the ICI?

• ICI compiled by the Office of the Economic Adviser, DPIIT.
• IIP compiled by NSO, MoSPI.
• Base year of the current ICI series: 2022-23.
• Release: 20th of the following month.
• Sept 2026: 7.9%; Apr–Sep 2026: 5.1%.

How to write about core sector data in Mains

Practice question (10 marks, 150 words): What do core sector indicators reveal about the state of the Indian economy? Discuss with reference to recent data. (GS-III)

• Intro: ICI 7.9% in Sept 2026; 5.1% in H1.
• Drivers: iron ore, electricity, coal, refinery products, cement.
• Weak spots: crude oil, gas, fertilizers.
• Meaning: infrastructure push, power demand; base effects.
• Conclusion: sustain capex, fix energy output.