Industrial Activity Slows Down
Growth in India’s eight core industries slowed to 2%, according to data released by the Ministry of Commerce and Industry. This is a notable decline compared to the 6.3% growth recorded last year and slightly lower than the previous month’s 2.2% growth.
Fossil Fuels Drag the Index
The slowdown was largely driven by contractions in the fossil fuel sector, with the coal sector experiencing the largest decline of 12.3%. Oil and natural gas production also contributed to the overall slowdown in core sector activity.
Steel and Cement Show Strong Performance
Despite the overall slowdown, the steel and cement industries recorded double-digit growth, providing some relief to industrial output. These sectors remain key drivers of India’s infrastructure and construction activity.
Index of Eight Core Industries Overview
The Index of Eight Core Industries (ICI) measures the performance of sectors that contribute significantly to India’s industrial output, including:
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Coal
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Crude oil
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Natural gas
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Refinery products
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Fertilizers
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Steel
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Cement
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Electricity
The data suggests that while traditional energy sectors are facing challenges, manufacturing and construction-linked industries continue to support the economy.
