New Delhi, Sep 30 (FN Bureau) Dragged down by six out of eight key infrastructure components, India’s core sector output measured by index of eight core industries (ICI) fell 1.8% year-on-year (YoY) in August 2024. The core sector output had recorded 6.1% year-on-year growth in July this year. As per data released by Ministry of Commerce and Industry on Monday, the production of steel and fertilizers recorded positive growth in August this year while all other six components recorded decline. The index of eight core industries measures the combined and individual performance of production of eight core industries viz. cement, coal, crude oil, electricity, fertilizers, natural gas, refinery products and steel. The eight core industries comprise 40.27% of the weight of items included in the index of industrial production (IIP).
In August 2024, coal production declined by 8.1% year-on-year while crude oil production fell 3.4%. Natural gas, petroleum refinery products and cement production dropped 3.6%, 1% and 3% year-on-year respectively. Electricity generation declined by 5% during this period. Fertilizer and steel production increased 3.2% and 4.5% year-on-year respectively. Commenting on core sector data, ICRA chief economist Aditi Nayar said, “The output of core industries posted a sombre 1.8% YoY contraction in August 2024, the first instance of a decline in as many as 42 months. Excess rainfall impacted mining activity, with the output of coal, crude oil, and natural gas declining, while also leading to a contraction in electricity generation in the month.” She further said, “The decline in these sectors was accentuated by an elevated base, with a deficient rainfall in August 2023 supporting the output of these sectors in that month.” The official data showed core sectors rose 4.6% year-on-year during April-August period of the current fiscal 2024-25.