Core sector growth in December 2023 hits 14-month low of 3.8%

The eight core sectors posted growth of 3.8 per cent in December 2023, according to data released by the Ministry of Commerce and Industry on Wednesday.

At 3.8 per cent, the growth in the eight key infrastructure industries – coal, crude oil, steel, cement, electricity, fertilisers, refinery products and natural gas – in the last month of 2023 is the lowest in 14 months.

In November 2023, core sector growth had printed in at 7.8 per cent. The Commerce Ministry on Wednesday revised this figure slightly up to 7.9 per cent. The output of the eight core sectors had grown by 8.3 percent in December 2022.

In April-December, the output of India’s eight core industries was 8.1 per cent higher year-on-year, the same as in the first nine months of 2022-23.

The weaker core sector growth in December was largely due to an unfavourable base, with the overall index of the eight core industries having surged by 10.1 per cent month-on-month in December 2022 – the period on whose basis the year-on-year growth in output in the last month of 2023 is calculated. As such, all but two of the sectors saw poorer growth performance in December compared to the growth numbers they had posted in November.

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