The Ministry of Statistics released the latest monthly sectoral output data Tuesday, showing the core sector accelerated from 5.9% in August to the highest level recorded under the new base year, a lift that eclipses the 3.1% rise seen a year earlier.
Electricity output surged 11.4%, cement climbed 5.8%, and refinery products jumped 10.3% – all riding a wave of government‑backed infrastructure spending.
Yet the energy‑dominant slice of the economy trudged, with natural gas output falling 4.6%, crude oil down 1.4%, and fertilisers sliding 11.7%, a slump traced to the West Asian conflict’s spill‑over.
Coal, however, defied the trend, posting a 10.7% rise, while the newly added iron ore industry leapt 18.4%, underscoring the mining sector’s resilience.
Bank of Baroda’s Madan Sabnavis noted that the September figures "highlight the buoyancy in infrastructure where the government has been spending." He added that the data will inform next quarter’s fiscal stimulus package.
As the government prepares to review its infrastructure budget next month, analysts expect a tilt toward expanded power and cement projects, aiming to sustain the current growth trajectory.