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Informist, Friday, Aug 30, 2024

--India Apr-Jul eight core industries' growth 6.1% vs 6.6% year ago 
--India Jul eight core industries' growth at 6.1% vs 5.1% in Jun 
--India Jul eight core industries' growth at 6.1% 

NEW DELHI – The growth in the output of India's eight core industries rose to 6.1% in July from a revised print of 5.1% in June, according to data released today by the Office of the Economic Adviser. The output of eight core industries, which accounts for 40.3% of the total weight of the Index of Industrial Production, had grown 8.5% in July last year.

The acceleration was mainly because of an increase in the growth of refinery products output. The output of refinery products, which has the highest weight in the eight core sectors at 28.04%, rose 6.6% last month compared with a contraction in output of 1.5% in June.

Growth in the output of India's eight core industries was also aided by an acceleration in the growth of steel, fertiliser, and cement output. Steel, which has the third-highest weightage, grew 7.2% in July against 6.7% a month ago. The output in cement grew 5.5% in July, against 1.9% in the previous month. Growth in the output of fertilisers also increased in July at 5.3% compared to 2.4% in June.

On the other hand, growth in the annual output of four of the eight core sectors fell in July from the previous month. Coal output was the biggest laggard, growing 6.8% on year in July, against 14.8% in June. The output in natural gas contracted 1.3% in July against a growth of 3.3% in the previous month. With only a 6.88% weightage on the index, its impact on the headline number was muted.

"Electricity continued to do well at 7%, which had backward link to coal which grew by 6.8%. This is an indication of heightened business activity as July was a month that had good rains and the ‘heatwave’ effect was minimal," Madan Sabnavis, chief economist at Bank of Baroda, said in a note. He expects industrial production to grow at a steady rate in July and be around 6%.

For Apr-Jul, the output of eight core industries rose 6.1%, compared with 6.6% last year.

The following tables give the year-on-year percentage change in output of the eight infrastructure industries in July and Apr-Jul, and the month-on-month change in the indices of the industries in July:

Source: Ministry of Commerce and Industry

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Reported by Pratiksha

Edited by Deepshikha Bhardwaj

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