Core sectors’ output grew at four-month high pace of 4.3% in November

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| Photo Credit: The Hindu

Output in India’s eight core infrastructure sectors that constitute about 40% of overall industrial production, grew at a four-month high pace of 4.3% in November, led by a 13% surge in cement, marking the sharpest rise in the key construction input’s production in well over a year.

On a sequential basis, however, the Index of Core Industries (ICI) was down 3.3% from October levels to 156.8, with six of eight sectors recording a decline in production. Refinery products and coal were the only segments to see a rise in absolute output levels, hitting a four-month and eight-month high, respectively.

The Commerce and Industry Ministry also revised upwards October’s growth number for core sectors from 3.1% estimated earlier, to 3.7%. On a year-on-year basis, crude oil (-2.1%) and natural gas (-1.9%) output remained in contractionary territory for the seventh and fifth month, respectively. However, the extent of contraction was at a six-month low for crude oil, and a three-month high for natural gas.

Electricity generation rose 3.8% from last November levels, but was a sharp 12.9% below October’s levels, and in fact, marked the weakest output recorded since December 2023. Steel output was up 4.8% from a year ago, but was 4.7% under October’s levels. Fertilisers’ output expanded 2% year-on-year, while refinery products were up 2.9% and coal production rose 7.5%.

Despite the double-digit growth in November, cement output was actually 5.5% lower than October and stood at a four-month low.