India’s core sector output rises to 5-month high of 8.2%

MUMBAI (ICIS)–India’s eight core sectors hit to a five-month high of 8.2% in June after increased capital expenditure by the government resulted in six of the eight sectors registering positive growth.

The core sectors posted growth of 13.1% in June 2022, according to the Ministry of Commerce and Industry on 31 July.

During the April to June quarter of financial year 2023-24, core sector output declined to 5.8% from 13.9% in the corresponding quarter of the last fiscal.

The core sectors last registered high growth of 9.7% in January 2023.

The six core sectors that reported an increase in production were crude oil, petroleum refinery products, fertilizers, natural gas, steel, coal, cement and electricity.

Petroleum refinery products grew 4.6% against 15.1% in June 2022 due to the current global slowdown. Coal output grew at 9.8% and fertilizer output increased 3.4% in June.

The eight core industries account for 40.27% of the Index of Industrial Production (IIP) and have a significant impact on the index.

India’s IIP output grew by 5.2% in May.