India’s core sector, which comprises industries such as coal, power, steel and cement, registered a growth of 6.1 per cent in July after slowing to 4 per cent in June, according to data released by the Commerce Ministry today (August 30).
The growth rate of the eight major industries in the sector during the first four months of the current financial year (2024-25) now stands at 6.1%, compared with 6.6% during the same period last year. Steel output growth rose to a three-month high of 7.2% in July, compared with 6.7% in the previous month.
Cement output rose to a four-month high of 5.5 per cent from 1.9 per cent in the previous month, reflecting a pick-up in construction activity. Oil production rose to an eight-month high of 6.6 per cent, while fertiliser output hit a seven-month high of 5.3 per cent as kharif sowing gained momentum due to a better monsoon this year. Coal industry output rose 6.8 per cent, while electricity generation rose 7.0 per cent in July.
Crude oil production continued to contract in April, while natural gas production also declined during the month.
Below is a summary of the index for the eight major industries:
1. Cement
Cement production (weight: 5.37 percent) increased by 5.5 percent in July 2024 over July 2023. Its cumulative index increased by 1.6 percent during April to July 2024-25 over the corresponding period of the previous year.
2. Coal
Coal production (weight: 10.33 percent) increased by 6.8 percent in July 2024 over July 2023. Its cumulative index increased by 9.9 percent during April to July 2024-25 over the corresponding period of the previous year.
3. Crude oil
Crude oil production (weight: 8.98 percent) decreased by 2.9 percent in July 2024 over July 2023. Its cumulative index decreased by 1.3 percent during April to July 2024-25 over the corresponding period of the previous year.
4. Electricity
Electricity generation (weight: 19.85 percent) increased by 7.0 percent in July 2024 over July 2023. Its cumulative index increased by 9.9 percent during April to July 2024-25 over the corresponding period of the previous year.
5. Fertilizers
Fertilizer production (weight: 2.63 percent) increased by 5.3 percent in July 2024 over July 2023. Its cumulative index increased by 1.3 percent during April to July 2024-25 over the corresponding period of the previous year.
6. Natural gas
Natural gas production (weight: 6.88 percent) decreased by 1.3 percent in July 2024 compared to July 2023. Its cumulative index increased by 4.3 percent during April to July 2024-25 compared to the corresponding period of the previous year.
7. Petroleum refinery products
Oil refinery output (weight: 28.04 percent) increased by 6.6 percent in July 2024 over July 2023. Its cumulative index increased by 2.3 percent during April to July 2024-25 over the corresponding period of the previous year.
8. Steel
Steel production (weight: 17.92 percent) increased by 7.2 percent in July 2024 over July 2023. Its cumulative index increased by 7.6 percent during April to July 2024-25 over the corresponding period of the previous year.
The Finance Ministry is optimistic about future prospects. Its monthly report for July indicates that India’s economic momentum remains broadly intact. Despite a somewhat erratic monsoon, reservoirs have been replenished. Manufacturing and services sectors are expanding, according to purchasing managers’ indices. Tax collections — especially indirect taxes, which reflect transactions — are growing healthily, as is bank credit, the report said.
Inflation is moderating and exports of goods and services are performing better than last year. Stock markets are holding steady. Foreign direct investment is improving as gross inflows rise, the report says.
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