India’s infrastructure sector recorded a 7.9 per cent year-over-year increase in September 2026, supported by strong growth in electricity generation, refinery products, coal and iron ore production, according to government data released Wednesday.
The latest figures represent an acceleration from the revised 5.9 per cent growth recorded in August and mark the strongest performance since June, when the government updated the index’s base year to 2022–23.
The infrastructure index tracks nine major sectors that collectively account for approximately one-third of India’s industrial production, making it an important indicator of broader economic activity.
Electricity generation increased by 11.4 per cent in September, although growth moderated from the revised 13.1 per cent recorded in August. Refinery products output rose by 10.3 per cent, nearly doubling the previous month’s revised growth rate of 5.6 per cent.
Coal production registered a significant recovery, expanding by 10.7 per cent after contracting 3.8 per cent in August. Iron ore output also recorded substantial growth, climbing 18.4 per cent compared with a 5.5 per cent increase in the preceding month.
Steel production strengthened, rising 4.9 per cent in September compared with 3.5 per cent in August. Meanwhile, cement output increased by 9.8 per cent, reflecting continued activity in the construction sector, although growth slowed from 11.7 per cent a month earlier.
Despite the overall improvement, several sectors continued to experience declining production. Crude oil output fell 1.4 per cent in September, following a 3.6 per cent contraction in August.
Natural gas production declined by 4.6 per cent, compared with a 4.9 per cent decrease in the previous month. Fertilizer output also remained under pressure, falling 11.7 per cent after contracting 12.4 per cent in August.
For the April-to-September period, India’s infrastructure output expanded by 5.1 per cent, more than double the 2.5 per cent growth recorded during the corresponding period last year.
The latest data indicates strengthening momentum across several key industrial sectors, particularly energy generation, refining and mineral production. However, continued declines in crude oil, natural gas and fertilizer output highlight uneven performance within the broader infrastructure sector.
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