Economy
India's Core Sector Growth Soars To 14-Month High Of 12.1 Per Cent In August
Electricity is one of the eight core industries (Representative Image)
India's eight core sectors experienced a significant growth of 12.1 percent in August, according to the data released by the Ministry of Commerce and Industry on Friday (29 September).
This growth rate is the highest in 14 months and was driven by a favourable base effect, Moneycontrol reported.
The key infrastructure industries that contributed to this growth include coal, crude oil, steel, cement, electricity, fertilisers, refinery products, and natural gas.
The growth rate for July has also been revised upwards from 8 percent to 8.4 percent. In August 2022, the core sectors witnessed a growth rate of 4.2 percent.
From April to August, the core sector output recorded a growth rate of 7.7 percent compared to 10 per cent in the first five months of FY23.
The core sector growth in August was driven by significant increases in the output of five of the eight industries.
These industries include cement with a growth rate of 18.9 percent, coal with 17.9 percent, electricity with 14.9 percent, steel with 10.9 percent, and natural gas with 10.0 percent.
In August, the output of coal and electricity experienced the highest increase in 14 months.
Similarly, cement and natural gas saw their largest growth in nine and 18 months, respectively.
Additionally, refinery products witnessed a production rise of 9.5 percent, which is the highest in 14 months, compared to 3.6 percent in July.
The year-on-year crude oil output increased by 2.1 percent in August, maintaining its growth rate from July.
July marked the first time in 14 months that crude oil production experienced a rise.
The growth in eight core industries, which account for over 40 percent of the IIP, are considered a leading indicator of industrial growth.
In July, India's industrial output reached a five-month high of 5.7 percent, surpassing the consensus estimate of 5 percent.
The rise in the output of the core industries, which account for over 40 percent of the IIP, are considered a leading indicator of industrial growth.
In July, India's industrial output reached a five-month high of 5.7 percent, surpassing the consensus estimate of 5 percent.
The IIP data for August is scheduled to be released on October 12.
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