After making a remarkable comeback in August at 4.3%, the industrial production growth dipped to 3.8% in September. In August, the industrial production had hit a nine-month high mainly on account of robust performance of mining and power sectors coupled with higher capital goods output. The growth of industrial production slowed down despite healthy growth in core sectors.
India’s core sectors grew by 5.2% in September, the highest growth rate since April, on account of robust performance of coal, petroleum refinery and natural gas segments, according to the official data. Core infrastructure sectors — coal, crude oil, natural gas, refinery products, steel, cement and electricity — showed an expansion between 0.1% and 10% in the month of September, lifting the growth of core sector to 5.2% from previous months 4.9%, and last year’s 4.4% in the same month.
The highest growth was registered in the coal sector, which posted 10.6% growth year-on-year, followed by petroleum refinery at 8%, natural gas at 6.3% and electricity at 5.2%. The fertiliser sector, like previous months, posted a decline of 7.1% year-on-year. The steel sector which showed a slowdown in the month of August posted a rebound and grew at 3.3% as compared to 3%.
Cumulatively, the eight core sectors in April-September recorded a growth rate of 3.3% as against 5.4% in the same period a year ago, but up from previous month’s 3%.
Healthy growth in key sectors usually has a positive impact on the Index of Industrial Production (IIP) as these segments account for about 41% of the total factory output. Meanwhile, the September manufacturing output growth has risen 3.4% year-on-year as compared to 5.4% in the same period last year.