Core sector grows 7.9% in September 2026, fastest since the new series began
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.
Published 22 October 2026. Written by Pratidin from the reports linked at the end; every fact checked by a separate review before publishing. How we work
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?
- Refinery products
- Steel
- Electricity
- Coal
Show answer
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.
Use this in UPSC Mains: previous-year questions
Recurring theme: Measuring industrial growth: core sector, IIP and the role of infrastructure industries
- How to use this
Use the September 2026 core data to show momentum in basic industries that feed manufacturing, while noting weak spots.
- Core industries grew 7.9% in September 2026 and 5.1% in April to September 2026, against 2.5% a year earlier.
- Steel grew 4.9% and cement 9.8%, but fertiliser output fell 11.7%, showing uneven industrial momentum.
Weights are examinable and they have changed: in the new 2022-23 series electricity has the highest weight at 30.93%, and the index now has nine industries.
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.
- Eight industries
- Core industries were 40.27% of IIP weight
- No iron ore
- Nine industries, iron ore added
- Core industries are 32.88% of IIP weight
- Back series available from April 2023
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%.
- 1Data from ministriesSource ministries and agencies report output for each of the nine industries.
- 2CompilationThe Office of Economic Adviser, DPIIT, builds the weighted index.
- 3Provisional releaseReleased around the 20th of the following month.
- 4Final revisionThe provisional figure is revised when fuller data arrive, as August 2026 was.
Go deeper
Why it matters for UPSC
Core sector data are a standard Prelims topic (UPSC asked about index weights in 2015) and a useful Mains indicator for questions on industrial growth, infrastructure and manufacturing. The July 2026 rebasing also changed facts that old notes get wrong: the number of industries, the weights and the share in industrial output.
The core idea
The Index of Core Industries measures the volume of output of nine basic industries whose products feed the rest of the economy. It is compiled by the Office of Economic Adviser in DPIIT and released before the broader Index of Industrial Production, so markets and policymakers read it as an early signal. A Base year revision in July 2026 moved the index to 2022-23 and added iron ore. In September 2026 the index stood at 118.3, against 109.6 a year earlier.
Numbers and dates to remember
- 7.9%: ICI growth, September 2026 (provisional); 3.1% in September 2025.
- 5.1%: cumulative growth, April to September 2026, against 2.5% a year earlier.
- August 2026 growth revised from 4.8% to 5.9%.
- Iron ore 18.4%, electricity 11.4%, coal 10.7%, refinery products 10.3%, cement 9.8%, steel 4.9%.
- Fertilisers minus 11.7%, natural gas minus 4.6%, crude oil minus 1.4%.
- 20 July 2026: new series, base 2022-23, nine industries; 32.88% of IIP weight.
Where to go next
- Index of Core Industries: what the nine industries are and how their weights work.
- Index of Industrial Production: the broader index the core sector feeds into.
- Base year revision: why statistical series are rebased and what changes.
- Office of Economic Adviser: the DPIIT office that compiles the ICI.
Go deeper: what a record core reading does and does not tell you
The case for reading it as strength. Growth was broad: six of nine industries expanded, and the cumulative April to September growth of 5.1% is double the 2.5% of the same period last year. Electricity, refinery products and steel together carry about 71% of the weight in the Index of Core Industries, and all three grew. Cement grew 9.8%, a sign of construction activity.
The case for caution. First, base effects: September 2025 growth was only 3.1%, so part of the 7.9% is a rebound from a weak month. Second, revisions: provisional numbers change, and August 2026 moved from 4.8% to 5.9%. Third, weakness persists in fertilisers, natural gas and crude oil, all of which contracted in both August and September 2026.
Why the series matters more after rebasing. The Base year revision cut the core sector's share of the Index of Industrial Production from 40.27% to 32.88%, so the ICI now explains a smaller slice of industrial output than before. Aspirants should not carry forward the old figure. The addition of iron ore also means the new index is not directly comparable with readings from the 2011-12 series.
Exam use. In Mains, use the ICI as evidence on infrastructure and industrial momentum, but pair it with caveats on base effects and revisions. In Prelims, remember the compiler (Office of Economic Adviser), the base year, the nine industries and electricity's top weight.
Index of Core Industries
The nine industries, their weights and how the index is read.
In one line: The Index of Core Industries is a monthly volume index of nine basic industries whose output is used by almost every other sector.
What it covers
The nine industries are coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, electricity and iron ore. In the 2022-23 base series their weights are electricity 30.93, refinery products 22.57, steel 17.58, crude oil 7.43, coal 5.60, iron ore 4.91, cement 4.41, natural gas 3.84 and fertilisers 2.73. Until July 2026 the index had eight industries and was called the Index of Eight Core Industries.
Why it is watched
It comes out around the 20th of the following month, before the broader industrial output index, so it works as an early signal. A high-weight industry such as electricity can move the whole index on its own.
Where to go next
Index of Industrial Production
The wider index of factory, mining and power output that the core sector feeds into.
In one line: The Index of Industrial Production (IIP) measures the monthly volume of output across mining, manufacturing and electricity, and is compiled by the National Statistics Office (NSO) in the Ministry of Statistics and Programme Implementation.
How it relates to the core sector
The core industries are a subset of the items in the IIP. In the new ICI series their weights come from the IIP item weights for 2022-23, and together they make up 32.88% of the IIP's weight, down from 40.27% in the 2011-12 series. Because the ICI is released earlier, analysts use it to anticipate the IIP.
Why the difference matters
A strong core reading does not guarantee a strong IIP: about two-thirds of the IIP's weight lies outside the core industries, including much of manufacturing.
Where to go next
Index of Industrial Production: every story that connects to it (2)
Base year revision
Why statistical indices are moved to a newer reference year.
In one line: A base year revision moves an index to a newer reference year (set equal to 100) and updates what it covers and how each item is weighted.
Why it is done
Economies change. Industries grow or shrink, new products appear and old ones fade. An index weighted on an old year slowly stops describing the present. Rebasing refreshes the basket and the weights so the index reflects current production.
The 2026 core sector example
On 20 July 2026 the ICI moved from base 2011-12 to base 2022-23. Iron ore was added as a ninth industry, weights were re-derived from 2022-23 data, and a back series from April 2023 was published so that year-on-year growth could be calculated from April 2024. One side effect: old and new readings are not directly comparable.
Where to go next
Office of Economic Adviser
The DPIIT office that compiles the core index and wholesale prices.
In one line: The Office of Economic Adviser (OEA) is part of the Department for Promotion of Industry and Internal Trade (DPIIT) in the Ministry of Commerce and Industry, and compiles the Index of Core Industries.
What it does
The OEA compiles and releases the monthly Index of Core Industries, using output data from the ministries and agencies in charge of each industry. It also compiles the Wholesale Price Index (WPI). Provisional figures are released around the 20th of the following month and revised later.
Why it is in the news
The OEA released the new 2022-23 base ICI series on 20 July 2026 and, on 21 October 2026, the September reading of 7.9%. Its next release, for October 2026, is due on 20 November 2026.
Where to go next
Take the 22 October 2026 quiz: 30 Prelims-style questions with answers