India’s Infrastructure Output Accelerates to 7.9 Per Cent

India’s infrastructure output accelerated in September as stronger activity in power generation, mining and construction-linked industries lifted growth to its highest level in the current data series. The infrastructure output index rose 7.9 per cent year-on-year, compared with revised growth of 5.9 per cent in August and 3.1 per cent in September 2025, according to government data released on Wednesday.

The latest expansion was the strongest since the series was introduced in April 2024, using 2022-23 as its base year. Coal production increased 10.7 per cent in September, reversing a 3.8 per cent contraction in August, while electricity generation rose 11.4 per cent.

Iron ore output expanded 18.4 per cent, reflecting stronger production across inputs linked to power supply, construction and industrial activity. Refinery products output grew 10.3 per cent, while cement production increased 9.8 per cent and steel output rose 4.9 per cent. Cement growth moderated from 11.7 per cent in August, whereas steel growth improved from 3.5 per cent.

Cumulative infrastructure output grew 5.1 per cent during April-September 2026, compared with 2.5 per cent in the corresponding period a year earlier. The stronger September performance helped improve growth across the first six months of the financial year.

The index tracks nine sectors: coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, electricity and iron ore. Together, they account for approximately one-third of India’s industrial production and provide an indicator of activity across energy, mining and construction-related industries. However, performance remained uneven, with fertiliser production declining 11.7 per cent, natural gas output falling 4.6 per cent and crude oil production contracting 1.4 per cent in September.

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