Core Sector Growth: There has been a decline in the production of eight major sectors related to infrastructure in August 2024. This is the first time after February 2021 that a decline has been seen in the country’s industrial output. Due to heavy rains, coal production and electricity production has been affected due to which the output has reduced. Due to reduction in crude oil, refinery products, cement and production, the growth rate of core sectors came down to 1.8 percent in August 2024 from 6.1 percent in July 2024. Only the production of steel and fertilizer has seen a jump in the month of August.
The Ministry of Commerce and Industry has released data regarding the production of eight core sectors. According to this data, due to decline in the production of coal, crude oil, natural gas, refinery products, cement and electricity, the production of eight major infrastructure sectors has declined by 1.8 percent in August this year. The growth rate of major basic industries like coal, crude oil, natural gas, refinery products, fertilizer, steel, cement and electricity was 13.4 percent in August 2023.
According to the data, the growth rate of major infrastructure sectors has increased at the rate of 4.6 percent during April-August of the current financial year 2024-25. In the same period of the last financial year, this figure was 8 percent. The weightage of items included in IIP in eight core industries is 40.27 percent.
In the month of August, coal production has decreased by 8.1 percent as compared to August 2023. Crude oil production has decreased by 3.4 percent in August 2024 as compared to August 2023. The production of natural gas has decreased by 3.6 percent. The production of petroleum refinery products has decreased at the rate of 1 percent. Cement production has decreased by 3 percent and electricity production has decreased by 5 percent. There has been an increase of 3.2 percent in fertilizer production. Whereas steel production has increased at the rate of 4.5 percent.
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