India’s core sector industries saw a 4% rise in output in December, driven by increased coal, steel, and electricity production, as per government data. These industries like coal, steel, and electricity make up 40.27% of the Index of Industrial Production. The growth rate of core industries indicates overall industrial growth. In December 2024, all sectors except natural gas grew positively. Sectors with positive growth were coal (5.3%), refinery products (2.8%), crude oil (0.6%), fertilisers (1.7%), cement (4%), steel (5.1%), and electricity (5.1%). From April to December 2024, core industries grew by 4.2%, down from 8.3% in the same period in 2023.
Experts say the decline is due to a high base effect and weaker sector performance. ICRA Chief Economist Aditi Nayar noted a slight drop in ore sector growth to 4.0% in December 2024 from 4.4% in November 2024, aligning with the 4.0% average between October-November 2024. Nayar anticipates IIP growth to moderate to 3-5% in December 2024 (compared to +4.4% in December 2023) from 5.2% in November 2024 (as opposed to +2.5% in November 2023), partly due to an unfavorable base effect.
Bank of Baroda’s Chief Economist Madan Sabnavis noted that in December 2024, core sector growth slowed due to weaker performance in 5 of the 8 segments. Notably, power grew by 5.1%, cement by 4%, and crude saw a positive turnaround from negative growth. He projected that the industrial production (IIP) growth for December would likely be approximately 4 to 4.5%, primarily supported by the consumer goods segment.
Sources News From Various Digital Platforms, Websites, Journalists, And Agencies.
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