New Delhi, Mar 28 (FN Bureau) Driven primarily by coal, cement and crude oil production, India’s core sector comprising of eight key infrastructure components grew 6.7% year-on-year in February 2024, as per data released by Ministry of Commerce and Industry on Thursday. “The combined Index of Eight Core Industries (ICI) increased by 6.7% in February 2024 as compared to the Index of February 2023. The production of coal, natural gas, cement, steel, crude oil, electricity and refinery products recorded positive growth in February 2024,” an official release said.
Fertiliser production however declined by 9.5% in February 2024 over February, 2023. The ICI measures 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). As per the official data, coal production increased by 11.6% in February, 2024 over February, 2023 while cement production grew 10.2% during this period. Crude oil and electricity production rose 7.9% and 6.3% respectively in February this year. Natural gas production increased by 11.3% in February, 2024 while petroleum refinery production increased by 2.6%.
Steel production increased by 8.4% in February, 2024 over February, 2023. Commenting on core sector data, ICRA Chief Economist Aditi Nayar said, “The core sector growth improved to a three-month high 6.7% in February 2024, boosted by a sequential improvement being recorded by six of its eight constituents, other than fertilizers and steel, which may partly reflect the extra day in the leap month. Notably, while growth in steel output dipped only mildly and remained healthy at 8.5% in February 2024, the YoY contraction in the output of fertilizers deepened sharply to 9.5% from 0.6%. On a positive note, three of the eight core industries displayed a double-digit expansion in February 2024, namely, coal, cement and natural gas.”