Core sector growth slows by 7.8% q-o-q, hit by low production of oil and cement

Growth in production of eight key infrastructure sectors slowed to a six-month low of 7.8 per cent in November due to a decline in output of crude oil and cement sectors. 

The growth rate in production of coal, fertiliser, steel and electricity also decreased during November this year. 

 According to the data released by the government on Friday, the growth during the month under review, however, is higher than the 5.7 per cent recorded a year ago. 

The core sector’s (coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity) growth in October was 12 per cent. 

The last low was registered in May when these sectors had recorded growth of 5.2 per cent. 

All sectors, except crude oil and cement, recorded healthy production growth in the month under review. 

Coal and refinery product output registered double-digit growth. 

Growth in output of eight sectors was 8.6 per cent in April-November 2023-24 against 8.1 per cent in the year-ago period. 

These numbers assume significance as the eight core sectors contribute 40.27 per cent to the Index of Industrial Production (IIP). 

Natural gas output rose by 7.6 per cent, while refinery products output jumped by 12.4 per cent during the month under review against (-) 0.7 per cent and (-) 9.3 per cent in November 2022 respectively. 

“Cement production decreased by 3.6 per cent in November 2023 over November 2022. Crude Oil production decreased by 0.4 per cent in November 2023 over November 2022,” the Commerce and Industry Ministry said.

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