NEW DELHI: The country’s core sector growth hit a five month-high at 8.2% in June with 29.1% rise in steel output, according to commerce ministry data. Output of the eight core sectors had grown at 5% in May and 4.3% in April. However, it slowed down as compared with the year-ago growth at 13.1%.
Refinery products registered a growth of 4.6% as compared with 15.1%, on account of global slowdown. Coal grew at 9.8%, significantly lower than the year-ago growth of 32.1%. In addition, cement recorded a growth of 9.4% as against 19.7% in the same month of the previous year.
Fertilizer output witnessed a lower growth at 3.4% as against 8.2% in a year-ago period, owing to base effect.“The core sector growth recorded a resounding rise to a 5 month high 8.2% in June 2023, from 5.0% in May 2023, led by six of the eight constituents except cement and fertilizers. The tardy onset of the monsoon contributed to an improved performance of electricity, coal etc,” Aditi Nayar, Chief Economist, Head - Research & Outreach, ICRA Ltd said.
“With the boost seen in mining and electricity from a dryer-than-normal June, we expect the YoY IIP growth to print at 4-6% in June 2023, in spite of the moderation in the YoY performance of several available high frequency indicators,” she further stated. Meanwhile, Gaura Sengupta, India Economist, IDFC First Bank said that both the steel and cement sectors are getting support from front loaded capex expenditure by the centre and state governments.