Data Alert
Core sector growth rises to 3.1% in Oct from 2.4% in Sept
This story was originally published at 18:56 IST on 29 November 2024
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--India Oct eight core industries' growth at 3.1% vs 2.4% in Sept
--India Apr-Oct eight core industries' growth 4.1% vs 8.8% year ago
NEW DELHI – The output of India's eight core industries rose 3.1% on year in October, data released Friday by the commerce ministry showed. Core sector growth had come in at 2.0% in September--now revised upwards to 2.4%--and was 12.7% in October 2023.
For the first seven months of 2024-25 (Apr-Mar), core sector growth stood at 4.1% compared to 8.8% in the corresponding period of FY24.
The rise in production of India's eight key infrastructure industries--coal, crude oil, steel, cement, electricity, fertilisers, refinery products, and natural gas--in October despite a somewhat unfavourable base effect was driven by the coal sector, with output of the fossil fuel surging 7.8% year-on-year from 2.6% in September. This was despite a high base, with the index for coal having jumped 16.7% month-on-month in October 2023, which is the base period for last month's growth figure.
The only other sector to post a meaningfully better performance in October was steel, whose production rose 4.2%, up from 1.6% the previous month. Meanwhile, the rise in output was only slightly higher for electricity at 0.6% as against 0.5% in September.
On other hand, output of crude oil and natural gas continued to shrink, while that of refinery products, fertilisers, and cement increased at a slower pace.
A rise in core sector growth in October is good news for industrial growth as a whole for the month as the eight core industries make up over 40% of the Index of Industrial Production. The rebound in core sector growth in September from a 42-month low of (-)1.6% in August along with a favourable base effect had helped push up IIP growth to 3.1% from its own 22-month low of (-)0.1% from August. As such, industrial growth for October--which will be released by the statistics ministry on Dec. 12--may rise further from 3.1%.
The following tables give the year-on-year changes in the index of the eight infrastructure in October and Apr-Oct:
| OCTOBER 2024 | SEPTEMBER 2024 | OCTOBER 2023 | |
| Coal | 7.8% | 2.6% | 18.4% |
| Crude oil | (-)4.8% | (-)3.9% | 1.3% |
| Natural gas | (-)1.2% | (-)1.3% | 10.0% |
| Refinery products | 5.2% | 5.8% | 4.3% |
| Fertilisers | 0.4% | 1.9% | 5.3% |
| Steel | 4.2% | 1.6% | 13.6% |
| Cement | 3.3% | 7.2% | 16.9% |
| Electricity | 0.6% | 0.5% | 20.4% |
| Overall | 3.1% | 2.4% | 12.7% |
|
APR-OCT 2024-25 |
APR-OCT 2023-24 |
|
| Coal | 6.2% | 13.1% |
| Crude oil | (-)2.5% | (-)0.1% |
| Natural gas | 1.5% | 5.1% |
| Refinery products | 2.7% | 4.0% |
| Fertilisers | 1.5% | 6.7% |
| Steel | 5.9% | 15.6% |
| Cement | 1.8% | 12.3% |
| Electricity | 5.3% | 7.9% |
| Overall | 4.1% | 8.8% |
Source: Ministry of Commerce and Industry
End
Reported by Siddharth Upasani
Edited by Akul Nishant Akhoury
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