New Delhi: Eight core sectors’ output growth slows down to 6.1 per cent in July from 8.5 per cent a year ago. India’s core sector comprises 8 key sectors of the economy, namely: coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and power.
Refinery products, fertilisers, steel and cement sectors performed better month-on-month, while crude oil and natural gas sectors reported negative growth. Coal and power sector growth moderated in the month of July.
Why is core sector output important?
Core sector industries make up 40.27 per cent of the Index of Industrial Production, which accounts for economy-wide economic production. Since the industries measured by the core industries’ index comprise fundamental sectors related to infrastructure, it is a key indicator of economic activity in the economy.
How are different industries weighted in the core index?
Refinery products have the highest share in core sector data at 28.04 per cent, followed by power at 19.58 per cent and steel at 17,92 per cent. Coal, crude oil and natural gas have a respective share of 10.33 per cent, 8.98 per cent and 6..8 per cent in the core index. Cement and fertilisers have a 5.37 per cent and 2.63 per cent share, respectively in the core sector output index.
In real terms, cement production has risen 2.40 per cent in June 2024 from a year ago period, according to MOSPI data. Finished steel production rose 2.51 per cent during the period under consideration, and fertiliser sector output rose 1.8 per cent during the same period.
M-o-M performance growth rate (June, 2024 viz-a-viz June, 2023) and actual performance against the Monthly Target Value are showcased below indicating Infrastructure Sector Performance in the Industrial Cluster (Steel, Fertilizers & Cement Sector) pic.twitter.com/1ZfCkUBOVP
— Ministry of Statistics & Programme Implementation (@GoIStats) August 29, 2024
According to Acuite Research, the core sector has been a growth driver in FY24, and likely to be the same in FY25.
India’s core sector output rose to 6.1 per cent from 5.1 per cent in June, according to data shared by the commerce and industry ministry. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
