India's core industries see growth of 2 percent in September 2024, driven by cement, refinery products, and coal

India's Index of Eight Core Industries (ICI) registered a 2 per cent growth in September this year, compared to the same month last year, the Ministry of Commerce and Industry reported on Wednesday.

According to the release, this growth was primarily driven by increased production in the Cement, Refinery Products, Coal, Fertilisers, and Steel sectors. The eight core industries, which constitute 40.27 per cent of the Index of Industrial Production (IIP), provide a crucial overview of India's industrial health.

The ministry's data reveals mixed sectoral performance. The Coal sector, which holds a weight of 10.33 per cent in the ICI, rose by 2.6 per cent in September 2024, with a cumulative growth of 5.9 per cent from April to September 2024-25 compared to the same period last year.

The largest component, Refinery Products, with a weight of 28.04 per cent, increased by 5.8 per cent in September. Cumulatively, refinery products grew by 2.3 per cent from April to September 2024-25.

Cement output saw the highest growth among the core sectors, surging by 7.1 per cent in September. However, its cumulative growth from April to September was more moderate, at 1.6 per cent.

Steel production increased by 1.5 per cent year-over-year in September, with a strong cumulative growth rate of 6.1 per cent from April to September. Fertiliser production grew by 1.9 per cent in September, contributing to a cumulative growth of 1.7 per cent over the April-September period.

However, some industries saw declines. Crude Oil production dropped by 3.9 per cent in September and declined by 2.1 per cent cumulatively over the April-September period. Natural Gas recorded a 1.3 per cent decrease in September, although its cumulative index rose by 2 per cent for April-September 2024-25.

Electricity, one of the largest components of the ICI, fell by 0.5 per cent in September, although its cumulative growth over the first half of the fiscal year remained strong at 5.9 per cent.

The cumulative growth rate for the ICI in the April-September 2024-25 period stood at 4.2 per cent, indicating a modest upward trend despite sectoral challenges. In June 2024, the ICI recorded a final growth rate of 5.0 per cent, reflecting resilience in certain segments.