India's Core Sector Output Grows By 3.1% In October - Key Details

The growth of India's key infrastructure sectors decelerated significantly to 3.1 per cent in October 2024, down from a robust 12.7 per cent growth recorded during the same month last year, as per official data released on Friday. While the growth remained positive, the slowdown marks a sharp decline in the pace of expansion for these vital sectors.

On a monthly basis, however, the output of these eight core sectors showed some improvement, exceeding the 2.4 per cent growth observed in September 2024. The sectors included in this index are coal, crude oil, natural gas, refinery products, fertiliser, steel, cement, and electricity, which together account for over 40 per cent of the overall industrial production in India.

In October, several sectors saw a moderation in growth. Coal production grew by 7.8 per cent, a significant drop from 18.4 per cent a year ago. Fertiliser output rose by just 0.4 per cent, down from 5.3 per cent, while steel and cement production increased by 4.2 per cent and 0.6 per cent, respectively, compared to 16.9 per cent and 20.4 per cent in October 2023.

Notably, the production of crude oil and natural gas declined during the month, indicating a contraction in energy production. However, refinery products saw a positive growth of 5.2 per cent, contributing to some stability in the overall performance of the sector.

For the April-October period of the current fiscal year, the eight core sectors grew by 4.1 per cent, down from 8.8 per cent in the same period last year. This slowdown in growth reflects broader challenges in the economy, affecting industrial output and raising concerns about the pace of recovery.

The eight core sectors play a crucial role in India’s industrial production, with their performance directly impacting the Index of Industrial Production (IIP), a key gauge of overall industrial activity.