India’s core infrastructure sectors recorded a modest 3.1 per cent growth in October 2024, a sharp decline from the robust 12.7 per cent growth seen in the same month last year, according to official data released on Friday. On a brighter note, this marks an improvement from the 2.4 per cent growth reported in September 2024.
The eight core sectors — coal, crude oil, natural gas, refinery products, fertiliser, steel, cement, and electricity — collectively account for 40.27 per cent of the Index of Industrial Production (IIP), a key indicator of overall industrial performance.
Sector-Wise Performance
Several sectors witnessed slower growth compared to October 2023. Coal production grew by 7.8 per cent, down from 18.4 per cent last year, while fertiliser and steel output rose by a marginal 0.4 per cent and 4.2 per cent, respectively, compared to 5.3 per cent and 16.9 per cent a year ago. Cement production growth dropped significantly to 0.6 per cent from 20.4 per cent in October 2023.
The electricity sector also saw a marked slowdown, with production rising by only 0.6 per cent, a sharp contrast to the 20.4 per cent growth recorded last October. Crude oil and natural gas production, however, experienced outright declines during the month.
On the positive side, refinery product output rose by 5.2 per cent, providing a much-needed boost to the overall numbers.
For the April-October period of the current fiscal year, the eight core sectors reported a cumulative growth of 4.1 per cent, significantly lower than the 8.8 per cent growth achieved in the same period last fiscal year.
The slowdown in core sector growth highlights the challenges faced by key infrastructure industries amid global and domestic economic uncertainties. The government will likely monitor these trends closely as they have a substantial impact on broader industrial performance and economic growth.
