New Delhi, Oct 30 (FN Bureau) India’s core sector output measured by index of eight core industries (ICI) grew by 2% year-on-year (YoY) in September, 2024. As per data released by Ministry of Commerce and Industry on Wednesday, the production of cement, refinery products, coal, fertilizers and steel recorded positive growth in September this year. The production of the remaining three sectors out of eight core industries declined during the period under review. “The cumulative growth rate of ICI during April to September, 2024-25 is 4.2 per cent (provisional) as compared to the corresponding period of last year,” the official statement on core sector data said.
The core sector output had contracted 1.6% year-on-year in August 2024. The ICI measures the combined and individual performance of production of eight core industries viz. coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity. The eight core industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP). The official data showed coal production increased by 2.6% in September, 2024 over September, 2023 while crude oil production declined by 3.9% during this period. Natural gas production declined by 1.3% year-on-year in September, 2024. Petroleum refinery and fertilizer production increased by 5.8% and 1.9% respectively in September this year.
Steel production increased by 1.5% in September, 2024 over September, 2023. While cement production increased by 7.1% year-on-year in September this year, electricity generation declined by 0.5%. Commenting on core sector data, ICRA chief economist Aditi Nayar said,”The easing of the disruption related to rainfall on sectors like mining and electricity contributed to the turnaround in the core sector’s performance to a growth of 2.0% in September 2024 from the mild contraction of 1.6% in the previous month. The disaggregated trends are relatively healthy, with a sequential improvement in the YoY growth of five of the 8 sectors.”