India's infrastructure output grew 7.9% year-on-year in September, reaching its highest growth rate since April 2024 under the country's new data series. Strong performance in electricity generation, refinery products, coal and iron ore production supported the expansion, according to government data released on Wednesday.

AdvertisementThe Puranic

The infrastructure output index tracks activity across nine key sectors and accounts for approximately one-third of India's industrial production. In August, growth stood at a revised 5.9%, highlighting an improvement in overall performance in September.

Electricity generation increased 11.4% in September, although growth eased from 13.1% in August. Refinery products output rose 10.3%, accelerating from the revised 5.6% growth recorded in the previous month. Coal production also recovered, increasing 10.7% after declining 3.8% in August.

Iron ore production recorded significant growth of 18.4%, compared with 5.5% in the previous month. Steel production expanded 4.9%, up from a revised 3.5% in August, while cement output increased 9.8%, moderating from 11.7%.

However, the performance remained uneven across sectors. Crude oil production declined 1.4% in September, although the contraction was smaller than the 3.6% fall recorded in August. Natural gas output also contracted 4.6%, while fertiliser production dropped 11.7%, reflecting continued weakness in these segments.

For the April-September period of the 2026-27 financial year, infrastructure output grew 5.1%, compared with 2.5% during the corresponding period a year earlier.

The September figures indicate stronger momentum across several major industrial sectors, although declines in oil, natural gas and fertiliser production show that the recovery remains uneven. Sustaining this growth will depend on continued industrial demand and performance across the wider economy.