Eight Core Industries Grew At Slowest Pace In Six Months In November
The index of eight core industries rose 7.8% in November, after rising 12% year-on-year in October.
India's eight core infrastructure industries continued to grow, but at the slowest pace since May this year.
The index of eight core industries rose 7.8% in November, after rising 12% year-on-year in October, according to data released by the government on Friday.
Expectedly, there has been a moderation in core sector growth in November to 7.8% year-on-year as compared to the double-digit print in October 2023, Suman Chowdhury, chief economist and head of research at Acuité Ratings, said. The differential in economic activity during these months can be attributed to the festival dates and the seasonality attached to it, he explained. On a cumulative basis, the eight core industries index has witnessed strong 8.6% annual growth in the April–November 2023 period, which continues to reflect the high public investments in infrastructure, he added.
Going ahead, the core sector growth in the next few months may moderate further due to a less favourable base, according to him. "We estimate core sector growth for the full fiscal to be in the range of 6–6.5%, which would still be the highest growth in the last ten years excluding FY23, just after the Covid pandemic."
Break-Up Across Eight Core Sectors (YoY)
Coal output rose 10.9% in November on an annual basis, versus 18.4% in October.
Crude oil output fell by 0.4%, as compared with 1.3%.
Natural gas output grew 7.6% versus 9.9% a month ago.
Refinery products rose 12.4%, compared to 4.2% in the previous month.
Fertiliser production gained 3.4%, as against 5.3% the last month.
Steel output rose 9.1% compared with 10.7% last month.
Cement fell 3.6% versus 17.4% in the previous month.
Electricity output rose 5.6%, compared with a rise of 20.3% in October.
