NEWS
India's core sector growth increased by 7.9% in September; better performance by industries increased the growth rate.
India's core sectors (major industries) experienced rapid growth in September, driven primarily by the coal industry, electricity, and petroleum refineries.
India's core sector growth rate increased by 7.9%
India's economic growth rate has accelerated this year. India has achieved significant growth this fiscal year. The country's core sector is equally responsible for this. The growth rate has not stagnated but is accelerating. In this context, the growth rate of India's eight major industries (core sectors) has also increased in September, reaching 7.9%.
The rate was 5.9% in August, according to data released by the government on Wednesday, with growth accelerating due to improved coal production and better performance of electricity, petroleum refinery products and iron ore.
This figure represents the highest growth rate since
April 2024. These eight major industries contribute approximately 40% to the country's Index of Industrial Production (IIP). Therefore, their growth is used to gauge the state of the country's industrial activity.
How much increase has happened in which areas?
| industry sector | September growth rate | August growth rate |
| power generation | 11.4% | 13.1% |
| petroleum refinery production | 10.3% | 5.6% |
| coal production | 10.7% | 3.8% |
| Iron ore | 18.4% | 5.5% |
| cement | 9.8% | 11.7% |
| Steel | 4.9% | 3.5% |
Not every industry in the core sector has performed well. Several industries have shown significant underperformance. Here's a list of those industries :
- Crude oil production fell by 1.4%, compared to a decline of 3.6% in August.
- Natural gas production declined by 4.6%, compared to a decline of 4.9% in August.
- Fertilizer production declined by 11.7%, compared to a decline of 12.4% in August.
Growth in the core sector is crucial. It should be noted that in the first half of this fiscal year, from April to September, the total production of eight major industries increased by 5.1%. During the same period last fiscal year, this growth was only 2.5%. Core sectors include coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity. These industries play a vital role in power generation, construction, transportation, and infrastructure development. Therefore, their growth rate also impacts the country's economic growth rate.
