India's core sector growth surges to 7.9% in September, highest on record

India's core industrial sectors demonstrated accelerated growth in September, with the Index of Core Industries (ICI) climbing to 7.9%, according to official data released by the Ministry of Commerce and Industry on Wednesday. The reading represents a substantial improvement from August's 5.9% expansion, underscoring renewed strength across infrastructure, manufacturing and energy-intensive industries that form the backbone of India's industrial economy.

The September performance marks the highest growth rate recorded since the ICI transitioned to its new base year of 2022-23, providing the most current benchmark for assessing industrial momentum. The core sector encompasses eight key industries including coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, which collectively account for approximately 40% of industrial production in India's broader manufacturing ecosystem.

The acceleration in core sector output suggests improving demand conditions and stronger capacity utilisation across critical industrial segments. The data provides an encouraging signal about India's industrial trajectory as the economy navigates global headwinds, with manufacturing activity gaining traction following a period of more moderate growth in preceding months.

Analysts will monitor whether the September momentum can be sustained in coming months, as core sector performance typically reflects broader economic health and investment activity across the country.