Eight core sectors output grow 8.1% in September

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| Photo Credit: G.N. Rao

Output from India’s eight core sectors grew 8.1% in September, led by sharp upturns in coal, steel and electricity production, even as crude oil slipped back into contraction mode after two months of growth.

While September’s growth rate for core sectors is the slowest in four months and significantly below the 12.5% mark hit in August, the overall Index of Core Industries touched its lowest point in seven months, as per provisional numbers from the Commerce and Industry Ministry.

Sequentially, September’s output levels were 4.8% below August. with each of the eight sectors seeing lower production month-on-month.

However, crude oil production, down 0.4% over September 2022 levels, was the only component that contracted year-on-year.

Coal production grew 16.1%, the second highest pace in at least 12 months, while Steel and Electricity rose 9.6% and 9.3%, respectively. Natural gas output rose 6.5%, the slowest uptick in three months, while refinery products were up 5.5%.

Growth in cement production hit a six-month low of 4.7%, while fertilisers production rose 4.2%, the fastest pace in four months.

“The cumulative growth rate of the Index of Core Industries during April to September, 2023-24 is 7.8% as compared to the corresponding period of last year,” the ministry said.