India's Core Sector Growth Moderates in July, Shows Mixed Performance

New Delhi, Aug 31 (KNN) India's eight core infrastructure industries experienced a moderation in growth, expanding by 6.1 per cent in July 2024 compared to 8.5 per cent in the same month last year, according to official data released by the Ministry of Commerce and Industry on Friday.

Despite the year-on-year slowdown, the growth rate showed improvement from June's 5.1 per cent, primarily driven by increased business activity and road construction. 

The core sector, which comprises coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity, serves as a key indicator of the country's economic health.

For the first four months of the fiscal year 2024-25, the core sector registered a cumulative growth of 6.1 per cent, slightly lower than the 6.6 per cent recorded in the corresponding period last year.

Paras Jasrai, Senior Economic Analyst, India Ratings and Research, noted, "Despite an unfavorable base effect, the core sector output grew better than the previous month." 

However, Jasrai cautioned that the growth remains uneven, with only four sectors – refinery products, fertilisers, steel, and cement – showing higher growth rates compared to June. These four sectors account for 54 per cent of the infrastructure segment.

The data revealed a mixed performance across different industries. While some sectors showed improvement, others experienced a decline in growth rates compared to July 2023. 

Coal output growth fell to 6.8 per cent, its lowest in 13 months, while crude oil production contracted by 2.9 per cent. 

The steel and cement sectors grew by 7.2 per cent and 5.5 per cent respectively, albeit at slower rates than the previous year. 

Electricity generation increased by 7 per cent, lower than last year's figure, and natural gas production declined by 1.3 per cent.

(KNN Bureau)