India’s Core Sector Industries Record 4.3% Growth in November

The core sector of India, which includes coal, electricity, steel, and cement industries, grew at 6.1 per cent in July after slowing to 4 per cent in June, according to data released by the Commerce Ministry on Friday.

The growth rate of the 8 core sector industries, for the first four months of the current financial year (2024-25), now works out to 6.1 per cent compared with 6.6 per cent during the same of the previous year.

The combined Index of Eight Core Sector Industries gauges the output of key sectors that include cement, coal, crude oil, electricity, fertilisers, natural gas, refinery products and steel which together have a 40 per cent weight in the Index of Industrial Production (IIP).

Steel production growth rose to a three-month high of 7.2 per cent in July, compared with 6.7 per cent in the previous month.

Cement production picked up 5.5% in a month, highest since four months, as compared with 1.9% during the previous month. Petroleum product showed an increase at 6.6% eight months and fertiliser at a seven-month high of 5.3%, as the better monsoon of this year quickened the momentum of kharif sowing. Output in the coal industry has risen by 6.8 per cent as electricity generation was up 7.0 per cent in July.

Crude oil production has continued to decline in April. Natural gas production also fell in the month.

The Finance Ministry is optimistic on the outlook. Its monthly report for July mentions that, overall, India's economic momentum continues to hold together.

While monsoon activity is a bit capricious, reservoirs are being recharged. Manufacturing and services sectors are expanding, according to the Purchasing Managers' indices.

Tax collections- especially indirect taxes, which reflect transactions-are growing healthily, and so is bank credit, according to the review.

Inflation is moderating, and exports of both goods and services are doing better than they did last year. Stock markets are holding on to their levels. According to the review, foreign direct investment is looking up as gross inflows are on the rise.