Core sector growth hits 30-month peak at 7.9% in September

India's core sector growth accelerated to 7.9% in September, marking the highest expansion in 30 months, as key industrial segments demonstrated renewed momentum. The uptick was primarily fueled by a sharp rebound in coal output, coupled with increased iron ore production and strong performance from the refining sector.

The core sector, which tracks eight core industries plus steel, serves as a barometer for the broader health of India's economy. The robust September performance suggests that manufacturing activity and resource-based industries are gaining traction after a period of moderation.

However, the expansion was uneven across sectors. While coal, iron ore, and refinery segments led growth, three of the nine core industries recorded contraction during the month, indicating that recovery remains patchy across the industrial landscape.

Analysts attribute the coal sector's rebound to improved mining operations and higher demand from power and steel producers. Iron ore output gains reflect continued strength in domestic steel production, while refinery expansion suggests robust demand for petroleum products and improved operational capacity utilization in the sector.