NEW DELHI: The Core sector output in September grew by 2% in September 2024 compared to the same month last year. Even though this is slightly better than the 1.6% contraction witnessed in August, it is below the average output growth of 4.2% in the first six months (April-September period) of the current financial year.
The Index of core industries tracks eight sectors – coal, crude oil, natural gas, refinery products, fertilizers, cement and electricity. Sectoral analysis shows production of crude oil, natural gas and electricity declined from previous year’s levels.
Output of crude oil declined by 3.9% in September, which is more than the contraction (-3.4%) witnessed in August. Natural Gas output declined 1.3% in September compared to 3.6% contraction in August. Electricity production also showed year-on-year contraction of 0.5% in September compared to a decline of 3.7% in August.
The turnaround in overall core sector output in September was primarily due to cement and refinery production. Both these sectors had seen contraction in August, but recovered well in September. Cement output grew by 7.1% in September compared to 3% contraction in August. The index for refinery production showed 5.8% growth in September compared to a decline of 1% in August.
Coal sector output showed a moderate growth of 2% after a deep cut of 8% in August. Other sectors – Steel (1.5%) and fertilizer (1.9%) – showed decline in growth vis-à-vis previous month. “The easing of the disruption related to rainfall on sectors like mining and electricity contributed to the turnaround in the core sector’s performance to a growth of 2.0% in September 2024 from the mild contraction of 1.6% in the previous month.