Core Industries Output Rebounds To 2% In September Amid Mixed Sectoral Performance

New Delhi, Nov 1 (KNN) India's eight core industries recorded a modest recovery with 2 percent growth in September 2024, bouncing back from a revised 1.6 percent contraction in August, according to official data released by the Commerce and Industry Ministry on Wednesday.

However, the latest figures show a significant decline from the 9.5 percent growth registered in September 2023.

The first half of the fiscal year saw core sector growth moderate to 4.2 percent, down from 8.2 percent during the same period last year.

The core sector index, which comprises coal, natural gas, crude oil, refinery products, fertilizers, cement, steel, and electricity, represents 40.27 percent of the Index of Industrial Production (IIP).

Five sectors demonstrated positive growth in September, with cement leading at 7.1 percent, followed by refinery products at 5.8 percent, coal at 2.6 percent, fertilizers at 1.9 percent, and steel at 1.5 percent.

However, crude oil experienced the steepest decline at -3.9 percent, while natural gas and electricity contracted by 1.3 percent and 0.5 percent respectively.

ICRA's Chief Economist Aditi Nayar attributed the turnaround to reduced rainfall-related disruptions in mining and electricity sectors. She noted that cement production reached a six-month high, while steel output recorded its slowest growth in 33 months.

ICRA projects IIP growth of 3-5 percent in September, supported by stronger GST e-way bill generation and favourable base effects.

Standard Chartered Bank's Head of India Economic Research, Anubhuti Sahay, expressed optimism for improved performance from October onward, despite current figures remaining below early-2024 levels.

The government has also revised June's core sector growth to 5 percent, following July's 6.1 percent growth and May's final growth rate of 6.9 percent.

(KNN Bureau)