Indian's Core Sector Growth Slows To 4% In June

Production in the sectors of coal, electricity, natural gas, steel, fertilizers, and cement showed positive growth in June 2024

This is also a decrease from the 8.2 per cent growth recorded in June 2023

Source : PTI

The growth of India’s eight core sectors slowed to 4 per cent year-on-year in June, down from 6.3 per cent in May, according to government data released on Friday. This is also a decrease from the 8.2 per cent growth recorded in June 2023. In addition, production in the sectors of coal, electricity, natural gas, steel, fertilizers, and cement showed positive growth in June 2024, said the government in a press release.

Crude oil production fell 2.6 per cent in June, a larger decline than the 0.6 per cent contraction observed in the same month last year. Cement production rose 1.9 per cent in June this year, a major slowdown compared to the 9.9 per cent growth recorded in June 2023. Conversely, coal production saw a notable increase of 14.8 per cent in June 2024.

Electricity generation grew 7.7 per cent in June 2024, up from 4.2 per cent during the same period last year.

From April to June this fiscal year (FY25), the output of core sectors increased by 5.7 per cent, compared to a 6 per cent rise in the same quarter of the previous fiscal year.

The Index of Core Industries (ICI) is a critical parameter that tracks the performance of eight key industries: cement, coal, crude oil, electricity, fertilizers, natural gas, refinery products, and steel. Together, these sectors represent 40.27 per cent of the Index of Industrial Production (IIP).