Core sector output grows 7.9% in Sep

Core sector output expanded by 7.9% in September, the highest in three months, on account of better show by coal, fertiliser, cement and electricity segments
Core sector output
Core sector output

New Delhi: Core sector output expanded by 7.9 percent in September, the highest in three months, on account of better show by coal, fertiliser, cement and electricity segments, according to official data released on Monday. In September last year, the growth rate stood at 5.4 percent. It was 4.1 percent in August. The previous high was in June when the output expanded by 13.1 percent.

The production growth of eight infrastructure sectors — coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity — was 9.6 percent during April-September this fiscal, compared to 16.9 percent a year ago.

The output of coal, fertiliser, cement and electricity in September rose by 12 percent, 11.8 percent, 12.1 percent, and 11 percent, respectively.

Refinery products output to rose 6.6 percent as against 6 percent in the same month last year.

However, crude oil and natural gas production contracted by 2.3 percent and 1.7 percent, respectively, during the month under review.

With this growth, we expect IIP to revert to 4-6% YoY: ICRA

Commerce and Industry Minister Piyush Goyal tweeted: "A reason why India is being called a global bright spot is the strength of its core industries. Output of 8 core industries in September grew 7.9 percent."

Commenting on the data, ICRA Ltd Chief Economist Aditi Nayar said after two months of moderation, core sector growth rebounded to a robust 7.9 percent in September.

With this growth, "we expect the IIP (index of industrial production) to revert to a modest 4-6 percent YoY (year on year) rise in that month, from the unexpected contraction in August 2022," she added.

The IIP data for September is expected to be released by the government in the second week of November.

The eight core industries contribute 40.27 percent in the IIP.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)

PSU Watch