In June 2024, India’s index for the eight core sectors of the economy grew by 4 percent compared to the same month last year, according to new data released by the commerce ministry. This growth is a slowdown from the 6.3 percent increase recorded in May 2024. However, the core sectors still showed robust performance, even though the growth rate decreased.
The eight core sectors, which play a significant role in India’s industrial output, include Coal, Electricity, Natural Gas, Steel, Fertilizer, Cement, Crude Oil, and Petroleum Refinery. These sectors together account for more than 40 percent of the Index of Industrial Production (IIP), a key indicator of industrial activity.
Over the past few months, the growth rates for these core sectors have been variable. For instance, the growth rate in April 2024 was 6.2 percent, and the final figure for March 2024 was 6.3 percent. This suggests a trend of fluctuating performance across the sectors.
Looking at specific industries, Coal production saw a significant increase of 14.8 percent in June 2024 compared to June 2023. This strong performance is also reflected in the cumulative data, with Coal production up by 10.8 percent from April to June 2024, compared to the same period last year.
Electricity generation also experienced a notable rise, growing by 7.7 percent in June 2024. The cumulative index for Electricity generation from April to June 2024 increased by 10.5 percent, indicating robust growth in the sector over the three-month period.
On the other hand, Crude Oil production faced a decline, dropping by 2.6 percent in June 2024 compared to the previous year. The cumulative index for Crude Oil production also fell by 0.7 percent from April to June 2024.
The Cement industry showed a modest growth of 1.9 percent in June 2024, and its cumulative index increased slightly by 0.3 percent from April to June 2024. Fertilizer production grew by 2.4 percent in June, but its cumulative index remained unchanged from the previous year.
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Natural Gas production saw a 3.3 percent increase in June 2024, and the cumulative index for this sector rose by 6.4 percent over the three months from April to June 2024.
Lastly, Petroleum Refinery production decreased by 1.5 percent in June 2024. Despite this decline, the cumulative index for Petroleum Refinery showed a small increase of 0.9 percent from April to June 2024 compared to the previous year.
The data highlights a mixed performance across the core sectors, with some showing strong growth while others faced declines. The cumulative growth rate of these core industries for the first quarter of 2024-25 stands at 5.7 percent, compared to the same period last year, reflecting both challenges and progress in the industrial sector.
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