India's core sector growth accelerates to 12% in October
What's the story
India's eight core industries experienced a remarkable 12.1% growth in October, as reported by the Ministry of Commerce and Industry. This increase is primarily due to a surge in cement and electricity production compared to the same period last year. In contrast, core sector growth was a mere 0.7% in October 2022. An improvement in core sector growth this month suggests that industrial growth, as per the Index of Industrial Production (IIP), will also post an increase.
Details
Cement and electricity sectors drive growth
Cement and electricity sectors were the main drivers of this growth, with cement production soaring by 17.1% year-on-year in October, up from 4.6% in September. Electricity generation also saw a huge increase, with a 20.3% YoY growth compared to 9.9% in September. Other sectors that experienced double-digit growth include coal (18.4%) and steel (11.0%), while natural gas output rose by 9.9%. Crude oil production grew by 1.3%, fertilizer production surged by 5.3%, and petroleum refinery products increased by 4.2%.
What Next?
April-October output higher year-on-year
From April to October, the output of these eight core industries grew by 8.6% year-on-year, a slight increase from the 8.4% recorded during the first seven months of FY23. The core sectors—coal, crude oil, steel, cement, electricity, fertilizers, refinery products, and natural gas—account for over 40% of the IIP's weight, making their growth a key indicator of industrial progress.