Data Alert
Core sector growth rises to four-month high of 4.3% in Nov
This story was originally published at 18:20 IST on 31 December 2024
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--India Nov eight core industries' growth at 4.3% vs 3.7% in Oct
--India Apr-Nov eight core industries' growth 4.2% vs 8.7% year ago
NEW DELHI – The output of India's eight core industries rose 4.3% on year in November, data released Tuesday by the commerce ministry showed. Core sector growth had come in at 3.1% in October--now revised upwards to 3.7%--and was 7.9% in November 2023.
For the first eight months of 2024-25 (Apr-Mar), core sector growth stood at 4.2% compared to 8.7% in the corresponding period of FY24.
The rise in output growth of India's eight key infrastructure industries--coal, crude oil, steel, cement, electricity, fertilisers, refinery products, and natural gas--in November was aided by a favourable base effect, which was particularly pronounced for the cement sector, with its index having fallen 13.8% month-on-month in November 2023, which is the base period. This propelled growth in cement production last month to 13.0% from 3.1% in October.
Base effect apart, the sequential momentum in production was strongest for coal, whose output was 7.3% higher in November compared to the previous month. On a year-on-year basis, coal output last month was 7.5% higher, slightly down from the 7.8% rise posted in October. The other sectors to show better year-on-year performance in November compared to October included fertilisers and electricity, although the latter benefited from a low base.
A rise in core sector growth in November 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. In October, IIP growth had edged up to 3.5% from 3.1% in September. As such, industrial growth for November--which will be released by the statistics ministry on Jan. 10--may rise further from 3.5%.
The following tables give the year-on-year changes in the index of the eight infrastructure in November and Apr-Nov:
| NOVEMBER 2024 | OCTOBER 2024 | NOVEMBER 2023 | |
| Coal | 7.5% | 7.8% | 10.9% |
| Crude oil | (-)2.1% | (-)4.8% | (-)0.4% |
| Natural gas | (-)1.9% | (-)1.2% | 7.5% |
| Refinery products | 2.9% | 5.2% | 12.4% |
| Fertilisers | 2.0% | 0.4% | 3.3% |
| Steel | 4.8% | 5.2% | 9.7% |
| Cement | 13.0% | 3.1% | (-)4.7% |
| Electricity | 3.8% | 2.0% | 5.8% |
| Overall | 4.3% | 3.7% | 7.9% |
|
APR-NOV 2024-25 |
APR-NOV 2023-24 |
|
| Coal | 6.4% | 12.8% |
| Crude oil | (-)2.4% | (-)0.2% |
| Natural gas | 1.1% | 5.4% |
| Refinery products | 2.7% | 5.0% |
| Fertilisers | 1.6% | 6.3% |
| Steel | 5.9% | 14.8% |
| Cement | 3.1% | 10.1% |
| Electricity | 5.3% | 7.7% |
| Overall | 4.2% | 8.7% |
Source: Ministry of Commerce and Industry
End
Reported by Siddharth Upasani
Edited by Deepshikha Bhardwaj
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