India Infrastructure Output Grows at Fastest Pace in Nearly 3 Years

Infrastructure output in India surged 7.9% from the previous year in September of 2026, the strongest pace of increase since November 2023, following an upwardly revised 5.9% gain in the prior month. Growth was driven by a rebound in the output of coal, rising 10.7% following a 3.8% decline, while production grew significantly further of iron ores (18.4% vs 5.5%) and steel (4.9% vs 3.5%). Stronger output growth of refined products to 10.3% from 5.6% also contributed. However, production of other energy products continued to decline, but at a slower pace, including crude oil (-1.4% vs -3.6%) and natural gas (-4.6% vs -4.9%), and also fertilizers (-11.7% vs -12.4%).

Infrastructure output in India rose by 4.8% from the previous year in August of 2026, easing from the downwardly revised 5% growth rate in the earlier month, but remaining above the lower rates following the initial response from the war in the Middle East. Growth was carried by construction materials, with output remaining high for cement (12.5% vs 12.7% in July), steel (3.4% vs 1.9%), and iron ore (5.5% vs 29.5%). In turn, energy remained under pressure as the war triggered a surge in fuel prices and costs that Indian manufacturers face. Output fell for crude oil (-3.6% vs -5.3%), natural gas (-4.9% vs -3%), and slowed for refinery products (2.6% vs 3.0%). Soaring LNG prices faced by Asian importers also hampered production of fertilizers (-12.4% vs -8%).

Infrastructure output in India rose by 5.4% from the previous year in July of 2026, extending the upwardly revised, ten-month high of 6% in the previous month. The result extended the period of traction from the more fragile growth rates in the second quarter after the war in Iran triggered a surge in energy prices and costs that Indian manufacturers face. Output accelerated for iron ore (29.5% vs 44.5% in June), cement (13.1% vs 9.9%), coal (7.6% vs 1.4%), and rebounded for refinery products (2.7% vs -4%) as producers were likely able to source greater crude oil feedstock. On the other hand, output fell for fertilizers (-8% vs -3.3%) and crude oil (-3.7% vs -4.8%).