For the first 8 months of FY25, core sector growth stood at 4.2% compared to 8.7% in the corresponding period of FY24

Informist New Delhi

The output of India's eight core industries rose 4.3% on year in November, data released Tuesday by the commerce ministry showed. Core sector growth had come in at 3.1% in October--now revised upwards to 3.7%--and was 7.9% in November 2023. 

For the first eight months of 2024-25 (Apr-Mar), core sector growth stood at 4.2% compared to 8.7% in the corresponding period of FY24. 

The rise in output growth of India's eight key infrastructure industries--coal, crude oil, steel, cement, electricity, fertilisers, refinery products, and natural gas--in November was aided by a favourable base effect, which was particularly pronounced for the cement sector, with its index having fallen 13.8% month-on-month in November 2023, which is the base period. This propelled growth in cement production last month to 13.0% from 3.1% in October. 

Base effect apart, the sequential momentum in production was strongest for coal, whose output was 7.3% higher in November compared to the previous month. On a year-on-year basis, coal output last month was 7.5% higher, slightly down from the 7.8% rise posted in October.

The other sectors to show better year-on-year performance in November compared to October included fertilisers and electricity, although the latter benefited from a low base. 

A rise in core sector growth in November is good news for industrial growth as a whole for the month as the eight core industries make up over 40% of the Index of Industrial Production. In October, IIP growth had edged up to 3.5% from 3.1% in September.

As such, industrial growth for November--which will be released by the statistics ministry on Jan. 10--may rise further from 3.5%.