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India’s Core Industries Growth Slows to 3% in September as Energy Output Contracts

The eight sectors that drive over 40% of the IIP signaled softer momentum with first‑half growth easing to 2.9%.

Overview

  • Official provisional data show a three‑month low for the Index of Eight Core Industries after August’s revised 6.5% pace.
  • Coal (-1.2%), crude oil (-1.3%), natural gas (-3.8%) and refinery products (-3.7%) contracted on a year‑on‑year basis.
  • Steel remained the standout with 14.1% growth, while cement rose 5.3%, electricity increased 2.1% and fertilisers gained 1.6%.
  • The eight core sectors carry 40.27% weight in the Index of Industrial Production, pointing to a likely moderation in near‑term industrial readings.
  • Reports cited excessive rainfall and flooding as temporary drags on coal and electricity output during the period.