New Delhi, May 1 (KNN) The growth of India's eight core industries, which comprise 40.27 per cent of the weight of the Index of Industrial Production (IIP), eased to 5.2 per cent in March 2024 compared to 7.1 per cent in February 2024.

This moderation was attributed to the statistical effect of a high base from the previous year.

Core sector comprises of Coal, Crude oil, Natural gas, Refinery products, Fertilizers, Steel, Cement and Electricity production.

For the entire fiscal year 2023-24, the core sector's output grew at a three-year low of 7.5 per cent, compared to 7.8 per cent growth in the previous fiscal year 2022-23.

On a year-on-year basis, the growth of five sectors – coal, crude oil, natural gas, refinery products, and steel – slowed in March from the levels recorded in February. However, the growth of fertilisers, cement, and electricity increased.

The production of refinery products, which carries a weight of 28 per cent in the core sector index, contracted by 0.3 per cent year-on-year in March. In February, the output had grown by 2.6 per cent.

The growth in the production of natural gas and crude oil eased to 2 per cent and 6.3 per cent, respectively, in March, down from 7.9 per cent and 11.3 per cent in February.

Economists attribute the sharp growth in coal and cement output to rising industrial activity, high demand for electricity, and the government's infrastructure push.

Looking ahead, ICRA Chief Economist Aditi Nayar projected the IIP growth to moderate somewhat in March, ranging between 3.5-5 per cent, as the leap year effect fades.

(KNN Bureau)