# Core sector grows 7.9% in September 2026, fastest since the new series began URL: https://upsc.help/current-affairs/2026-10-22/core-industries-september-2026-record/ Date: 22 October 2026 (2026-10-22) Source: The Hindu, Page 1 UPSC papers: GS3 Publisher: upsc.help (Pratidin), free and open-source UPSC Civil Services current affairs. Not affiliated with UPSC. Every fact was checked against the source reports by a separate review before publishing. **In one line:** India's nine core industries grew 7.9% in September 2026, the fastest pace in the new 2022-23 base series, led by iron ore, electricity, coal and refinery products. India's core sector grew 7.9% in September 2026 over September 2025, according to provisional data released by the Office of Economic Adviser (OEA), Department for Promotion of Industry and Internal Trade (DPIIT), on 21 October 2026. It is the fastest growth since April 2024, the first month for which the new series, with base year 2022-23, gives year-on-year growth. The index stood at 118.3 against 109.6 a year earlier, when growth had been only 3.1%. Growth for August 2026 was revised up from 4.8% to 5.9%. Cumulative growth for April to September 2026 was 5.1%, against 2.5% in the same period of 2025. Six of the nine core industries grew. Iron ore rose 18.4%, electricity 11.4%, coal 10.7% (after contracting 3.8% in August), refinery products 10.3%, cement 9.8% and steel 4.9%. Fertilisers fell 11.7%, natural gas 4.6% and crude oil 1.4%. The weights explain why the headline jumped: in the new series electricity carries 30.93% of the index, refinery products 22.57% and steel 17.58%, so the three together account for about 71%. All three grew in September. The Index of Core Industries (ICI) measures the volume of output of basic industries whose products are used across the economy, and is released before the broader Index of Industrial Production (IIP). On 20 July 2026 the OEA replaced the 2011-12 base series with a 2022-23 base, added iron ore as a ninth industry and derived the weights from the IIP's 2022-23 item weights. The core industries now make up 32.88% of the IIP's weight, down from 40.27% in the old series. Two cautions apply to the September reading: a weak base month and the fact that provisional figures are revised. The October 2026 data are due on 20 November 2026. ## Prelims facts - The Index of Core Industries grew 7.9% in September 2026 (provisional), the fastest since April 2024 in the 2022-23 base series. - Iron ore (18.4%), electricity (11.4%), coal (10.7%) and refinery products (10.3%) led; fertilisers, natural gas and crude oil contracted. - The ICI is compiled by the Office of Economic Adviser, DPIIT, and released around the 20th of the following month. - Since 20 July 2026 the ICI has base year 2022-23 and nine industries, with iron ore added; electricity has the highest weight (30.93%). - Core industries are 32.88% of the IIP's weight in the new series, down from 40.27% in the 2011-12 series. ## Quick recall - **ICI growth in September 2026 (provisional)?** 7.9%, the fastest since April 2024 in the 2022-23 base series. - **Who compiles the Index of Core Industries?** The Office of Economic Adviser, DPIIT, Ministry of Commerce and Industry. - **Base year of the new ICI series?** 2022-23, replacing 2011-12, released on 20 July 2026. - **Which industry was added to the ICI in 2026?** Iron ore, making nine core industries. - **Industry with the highest weight in the new ICI?** Electricity, 30.93%. - **Share of core industries in IIP weight, new series?** 32.88%, down from 40.27% in the 2011-12 series. - **Fastest-growing core industry in September 2026?** Iron ore, up 18.4%. - **Cumulative ICI growth, April to September 2026?** 5.1%, against 2.5% a year earlier. ## Prelims practice question In the Index of Core Industries with base year 2022-23, which one of the following industries carries the highest weight? (a) Refinery products (b) Steel (c) Electricity (d) Coal Answer: (c) Electricity. Electricity carries 30.93% of the weight in the 2022-23 series, ahead of refinery products (22.57%), steel (17.58%) and coal (5.60%). In the old 2011-12 series refinery products had the highest weight, so this has changed. ## UPSC previous-year questions this connects to - UPSC Prelims 2015, Prelims: In the Index of Eight Core Industries, which one of the following is given the highest weight? (a) Coal Production (b) Electricity generation (c) Fertilizer Production (d) Steel Production (https://upsc.help/pyq/prelims/#q348) - UPSC Mains 2023, GS3: Faster economic growth requires increased share of the manufacturing sector in GDP, particularly of MSMEs. Comment on the present policies of the Government in this regard. (https://upsc.help/pyq/q008-faster-economic-growth-requires-increased-share-manufacturing/) How to use this story in the answer: Use the September 2026 core data to show momentum in basic industries that feed manufacturing, while noting weak spots. ## Mains practice question The Index of Core Industries has been rebased to 2022-23 and widened to nine industries. Explain the importance of the core sector as an indicator of economic activity, and the caution needed in reading a single month's growth. (150 words) ### Model answer The Index of Core Industries (ICI) tracks the output of nine basic industries whose products feed the rest of the economy. In September 2026 it grew 7.9%, the fastest since April 2024 in the new 2022-23 series. ## Why the core sector matters - **Early signal:** released around the 20th of the next month by the Office of Economic Adviser, DPIIT, ahead of the IIP. - **Input to everything:** coal, power, steel and cement drive construction and manufacturing; cement grew 9.8% in September 2026. - **Updated basket:** the July 2026 rebasing added iron ore and refreshed weights, with electricity at 30.93%. ## Reading one month with care - **Base effect:** September 2025 growth was only 3.1%. - **Revisions:** August 2026 growth moved from 4.8% to 5.9%. - **Narrow coverage:** core industries are only 32.88% of IIP weight. - **Uneven sectors:** fertilisers fell 11.7%, natural gas 4.6% and crude oil 1.4%. A single strong month is a useful signal, but trends and revisions decide the real story. ## The basics ## Why this matters Every month, before the full industrial output data arrive, the government publishes a quick reading of nine basic industries: coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, electricity and iron ore. Together they are called the core sector, because almost every other activity uses their output. When coal, power and cement grow fast, factories, builders and transporters are usually busy too. That is why the September 2026 reading of 7.9% made the front page. ## What the index measures The Index of Core Industries (ICI) is a volume index. It tracks how much is produced, not prices. Each industry gets a weight, and the weighted average gives one number. Because the weights are uneven, a few industries move the whole index. In the new series, electricity alone carries almost a third of the weight. ## What changed in July 2026 On 20 July 2026 the Office of Economic Adviser in DPIIT replaced the 2011-12 series with a new one. A Base year revision updates the reference year and the weights so that the index reflects today's economy. Iron ore became the ninth industry, and the weights were taken from the item weights of the Index of Industrial Production for 2022-23. ## Reading the September numbers Six of the nine industries grew. Iron ore (18.4%), electricity (11.4%), coal (10.7%) and refinery products (10.3%) led. Fertilisers (minus 11.7%), natural gas (minus 4.6%) and crude oil (minus 1.4%) shrank. Two cautions apply. First, the base was weak: growth in September 2025 was only 3.1%. Second, the figure is provisional. August 2026 growth, for example, was revised from 4.8% to 5.9%. ## Sources - https://www.newsdrum.in/business/indias-core-sector-growth-hits-13-month-high-of-79-in-sep-coal-rebounds-iron-ore-surges-12696251 - https://upstox.com/news/business-news/economy/core-sector-output-growth-rises-to-7-9-in-september-on-strong-coal-refinery-power-output/article-202197/ - https://www.pib.gov.in/PressReleasePage.aspx?PRID=2286615®=48&lang=1 - https://www.drishtiias.com/daily-updates/daily-news-analysis/index-of-core-industries-with-base-year-2022-23 - https://www.insightsonindia.com/2026/10/22/the-index-of-core-industries-ici/