New Delhi: The combined Index of Eight Core Industries, including cement, coal, steel, and electricity, increased by 8.1 per cent in September 2023 as compared to September 2022, according to official figures released by the Commerce and Industry Ministry on Tuesday.
The drop in core sector growth in September was primarily driven by the cement industry, which posted a growth of a mere 4.7 per cent – the lowest in six months – after a huge 19.3 per cent rise in August. Crude oil production took a hit with a 0.4 per cent decline year-on-year.
For April-September, growth in core sector output is 7.8 percent compared to 9.8 percent in the first half of 2022-23.
“A pickup in rainfall expectedly flattened the core sector expansion in September,” said Aditi Nayar, Chief Economist at ICRA.
The Index measures combined and individual performance of production of eight core industries that also include fertilizers, natural gas, and refinery products. The Eight Core Industries comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP).
Electricity generation (weight: 19.85 per cent) increased by 9.3 per cent in September 2023 over September 2022. Its cumulative index increased by 6 per cent during April to September over the corresponding period of the previous year.
Steel production (weight: 17.92 per cent) increased by 9.6 per cent in September 2023 over the same month last year. Its cumulative index increased by 14.2 per cent during April to September over the corresponding period of the previous year.
Cement production (weight: 5.37 per cent) increased by 4.7 per cent in September, over the corresponding period of the previous year.
Coal production (weight: 10.33 per cent) increased by 16.1 per cent in September while its cumulative index increased by 12.2 per cent during April to September.
Crude Oil production (weight: 8.98 per cent) declined by 0.4 per cent during the month over September 2022. Its cumulative index declined by 0.4 per cent during April to September, 2023-24 over the corresponding period of the previous year.
Fertilizer production (weight: 2.63 per cent) increased by 4.2 per cent in September, while natural gas production (weight: 6.88 per cent) increased by 6.5 per cent in September.
Petroleum Refinery production (weight: 28.04 per cent) increased by 5.5 per cent in September over the same month last year. Its cumulative index increased by 4 per cent during April to September 2023-24 over the corresponding period of the previous year.
The final growth rate of the Index of Eight Core Industries for June 2023 has been revised to 8.4 per cent.
(IANS)
