India’s core sector industries record 4.3 pc growth in November

New Delhi, Dec 31 The output of India's eight core sector industries rose 4.3 per cent year-on-year in November due to a robust growth in cement and steel production during the month, according to government data released on Tuesday.

The November figures reflect an acceleration compared to the revised figure of a corresponding 3.7 per cent growth in infrastructure output for October.

Cement production surged by a robust 13 per cent in November, while steel output grew 4.8 per cent, slightly lower than the revised 5.2 per cent increase the previous month.

Electricity generation increased by 3.8 per cent, improving from a revised 2 per cent growth in October.

Fertiliser production rose by 2 per cent, a notable improvement from the 0.4 per cent increase in October.

However, crude oil production declined by 2.1 per cent, compared to a 4.8 per cent drop in October, while natural gas output fell 1.9 per cent, slightly more than the 1.2 per cent decrease recorded in the previous month.

Coal production rose by 7.5 per cent compared to 7.8 per cent in October, and refinery product output grew 2.9 per cent, compared to a 5.2 per cent rise in the previous month.

For the April-November period, infrastructure output grew by 4.2 per cent, a slowdown compared to the 8.7 per cent growth seen in the same period last year.

The eight core industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP) and are a good pointer to the overall industrial growth rate for the month.

ICRA Chief Economist Aditi Nayar said: "The core sector growth rose to 4.3 per cent in November 2024 from a revised 3.7 per cent in October 2024, with an improvement in half of its 8 constituents, partly reflecting the fading impact of heavy rainfall in the earlier months. The sequential uptick in the core sector’s performance was especially driven by a sharp increase in the growth of cement output, on the back of a low base.”

"Looking ahead, we expect the IIP to grow by 5-7 per cent in November 2024, partly benefiting from the uptick in core sector growth," she added.

Source: IANS