India’s eight core sectors grew by 6.1% in July, rebounding from June’s five-month low growth rate of 5.1%.
The data was released by the Commerce and Industry Ministry.
June 2024 Revisions:
June’s core sector growth was initially pegged at 4%, the lowest in 20 months.
The revised growth rate for June was adjusted to 5.1%, driven by significant upgrades in key sectors:
Steel Output: Revised to 6.7% growth, compared to the earlier estimate of 2.7%.
Electricity Generation: Revised to 8.6% growth, up from the earlier estimate of 7.7%.
Sectoral Performance in July 2024
Electricity Generation: Growth slowed to a six-month low of 7% in July.
Natural Gas Production: Contracted by 1.3%, marking the first contraction in over a year.
Coal Output: Growth eased to 6.8%, the lowest in at least 13 months.
Crude Oil Output: Declined for the third consecutive month, with a deeper year-on-year contraction of 2.9%.
Refinery Products: Growth surged by 6.6%, the fastest rise in eight months, providing a significant boost to the Index of Core Industries (ICI).
Fertilizer Output: Grew by 5.3%, hitting a seven-month high.
Steel Production: Increased by 7.2%, achieving the fastest growth in three months.
Cement Production: Rose by 5.5%, reaching a four-month high.
Economists’ Insights
Economists observed that July’s rebound in core sector growth was not broad-based.
Key segments driving growth were oil refineries, fertilizers, and steel.
Suman Chowdhury, Executive Director and Chief Economist at Acuité Ratings & Research, noted that core sector growth is expected to average between 5.5% and 6% for the year, supported by a pickup in public capital expenditure.
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