Core Sector Output Witness 7.9% Surge In Sep
In the last year during September, the growth rate stood at 5.4 per cent. Prior to that, it recorded 4.1 per cent in August. In June when the output expanded by 13.1 per cent, made it the previous high
The production of eight infrastructure sectors has witnessed a surge by 7.9 per cent during September, keeping it the highest during last three months. This has resulted due to better performance by coal, fertiliser, cement and electricity segments, as per the official data released on 31 October.
In the last year during September, the growth rate stood at 5.4 per cent. Prior to that, it recorded 4.1 per cent in August. In June when the output expanded by 13.1 per cent, made it the previous high. The growth in the production of eight infrastructure sectors viz. coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity was recorded at 9.6 per cent in April-September this year as against to 16.9 per cent a year ago.
The output of coal, fertiliser, cement and electricity during September went up by 12 per cent, 11.8 per cent, 12.1 per cent and 11 per cent, respectively. At the same time, the refinery products’ output surged by 6.6 per cent as against 6 per cent in the same month last year. Whereas, crude oil and natural gas production squeezed by 2.3 per cent and 1.7 per cent, respectively, during the month under review.
The commerce and industry, Minister Piyush Goyal through a tweet said, ” 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 per cent.”
Investment Information and Credit Rating Agency of India Limited (ICRA), Chief Economist Aditi Nayar commenting on the data said that the core sector growth rebounded to a robust 7.9 per cent in September, after considering two months of moderation.
With this growth it may be expected that the IIP (index of industrial production) may revert to a modest 4-6 per cent YoY (year on year) rise in that month, from the unpredicted contraction in August 2022. Most probably, the IIP data for September is expected to be outr in the second week of November by the government. The contribution of eight core industries accounts to 40.27 per cent in the IIP.