India's infrastructure output rose by 7.9% year-on-year in September. This marks the highest growth in 30 months, according to data from the Ministry of Commerce and Industry released on Wednesday. This growth exceeded the revised figure of 5.9% recorded in August and was much higher than the 3.1% increase seen in September of last year.
Key Details
The increase in output was driven by strong performances in several sectors. Coal production grew by 10.7%, recovering from a contraction of 3.8% in August. Steel output increased by 4.9%, and electricity generation rose by 11.4%. Iron ore production saw a notable increase of 18.4%, while refinery products grew by 10.3%. However, three sectors reported declines. Fertilizer output fell by 11.7%, natural gas production dropped by 4.6%, and crude oil output decreased by 1.4%.
Background
Overall, core sector output for the first half of the fiscal year (April-September 2026) grew by 5.1%. This is compared to 2.5% during the same period last year. The index tracks activity across nine key sectors and accounts for about one-third of India's industrial production. This highlights its importance to the broader economy.
This strong growth in infrastructure output is likely to boost optimism in sectors like construction and energy. It may also influence related stocks and indices. Investors will pay attention to the upcoming quarterly earnings reports from major companies in these sectors. They will look to gauge the impact of this growth on company performance.
Based on reporting by: livemint.com, moneycontrol.com