Core sector reports 8.1% growth in September
While this growth is positive, it marks a slowdown compared to August, which saw a 12.5 per cent growth rate, the highest in 14 months
In a notable shift from the robust expansion witnessed in the preceding month, India's core sectors experienced a palpable slowdown in September, data released on Tuesday showed.
With the growth rate marking the most sluggish in the past four months, the latest data starkly contrasts with August's remarkable surge, where these core sectors soared to a 12.5 per cent expansion, the highest recorded in over a year.
This abrupt deceleration has prompted concerns about the resilience of India's crucial economic pillars. The eight core sectors encompass industries ranging from coal and steel to electricity and natural gas.
India's eight core sectors experienced a growth rate of 8.1 per cent in September, according to data released by the Ministry of Commerce and Industry on October 31. While this growth is positive, it marks a slowdown compared to August, which saw a 12.5 per cent growth rate, the highest in 14 months.
The core sectors, which include coal, crude oil, steel, cement, electricity, fertilisers, refinery products, and natural gas, play a pivotal role in the Indian economy, accounting for 40.27 per cent of the Index of Industrial Production (IIP).
These sectors are considered a crucial barometer of the country's economic health. September's output dropped by 4.8 per cent compared to the previous month, with each of the eight sectors recording lower production.
Among the key industries, coal production demonstrated significant growth at 16.1 per cent, the second-highest pace in over a year. Steel and electricity production also saw an uptick of 9.6 per cent and 9.3 per cent, respectively. In contrast, crude oil production contracted by 0.4 per cent year-on-year, slipping back into negative territory after two months of growth.
Natural gas output registered a 6.5 per cent increase, the slowest in three months, while refinery product production showed a 5.5 per cent increase. Cement production, however, hit a six-month low with a growth rate of 4.7 per cent, and fertilisers production rose at the fastest pace in four months, with a 4.2 per cent growth.
For the April-September period, the growth in core sector output stands at 7.8 per cent, a notable decline from the 9.8 per cent growth recorded in the first half of the previous fiscal year.
The data highlights the importance of these core sectors in driving the Indian economy and influencing various other industries. These sectors are vital for overall economic stability and development, and their performance significantly impacts India's industrial production.
The Ministry of Commerce and Industry's Index of Eight Core Industries (ICI) provides valuable insights into the production performance of these sectors. As these sectors are considered the cornerstone of the economy, tracking their performance is crucial for understanding the country's economic health.