Data Alert
Core sector growth eases to 4.0% in Dec from 4.4% in Nov
This story was originally published at 18:01 IST on 31 January 2025
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--India Dec eight core industries' growth at 4.0% vs 4.4% in Nov
--India Apr-Dec eight core industries' growth 4.2% vs 8.3% year ago
NEW DELHI – The output of India's eight core industries rose 4.0% on year in December, data released Friday by the commerce ministry showed. Core sector growth was 5.1% in December 2023 and the November print was revised higher to 4.4% from the provisional estimate of 4.3%.
For the first nine months of 2024-25 (Apr-Mar), core sector growth stood at 4.2% compared to 8.3% in the corresponding period of FY24.
The moderation in output growth of India's eight key infrastructure industries--coal, crude oil, steel, cement, electricity, fertilisers, refinery products, and natural gas--in December was caused by an unfavourable base effect. The overall index had risen 7.2% month-on-month in December 2023.
Apart from the base effect, the sequential momentum in production was strongest for cement and coal. The output of cement rose 12.4% on month in December, while coal output increased 7.8% from November.
On a year-on-year basis, cement production rose 4.0% in December and coal output increased 5.3%. 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.
The output of refinery products, which has the highest weight in core industries, rose 2.8% on year in December compared to 2.9% in November.
A fall in core sector growth in December would likely lead to moderation in industrial growth as a whole for the month as the eight core industries make up over 40% of the Index of Industrial Production. According to Bank of Baroda Chief Economist Madan Sabnavis, IIP growth for December would be around 4-4.5% compared to 5.2% in November.
The following tables give the year-on-year changes in the index of the eight infrastructure in November and Apr-Dec:
| December 2024 | November 2024 | December 2023 | |
| Coal | 5.3% | 7.5% | 10.8% |
| Crude oil | 0.6% | (-)2.1% | (-)1.0% |
| Natural gas | (-)1.8% | (-)1.9% | 6.7% |
| Refinery products | 2.8% | 2.9% | 4.1% |
| Fertilisers | 1.7% | 2.0% | 5.9% |
| Steel | 5.1% | 4.4% | 8.3% |
| Cement | 4.0% | 13.5% | 3.8% |
| Electricity | 5.1% | 4.4% | 1.2% |
| Overall | 4.0% | 4.4% | 5.1% |
| Apr-Dec | Apr-Dec | |
| 2024-25 | 2023-24 | |
| Coal | 6.2% | 12.5% |
| Crude oil | (-)2.1% | (-)0.3% |
| Natural gas | 0.7% | 5.6% |
| Refinery products | 2.7% | 4.9% |
| Fertilisers | 1.6% | 6.2% |
| Steel | 5.8% | 14.0% |
| Cement | 3.3% | 9.4% |
| Electricity | 5.3% | 7.0% |
| Overall | 4.2% | 8.3% |
Source: Ministry of Commerce and Industry
End
Reported by Shubham Rana
Edited by Deepshikha Bhardwaj
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