India's Core Sector Growth Slows to 4.3% in November 2024

New Delhi, Dec 31 (PTI) The output of eight key infrastructure sectors slowed down to 4.3 per cent in November 2024 against 7.9 per cent growth registered in the same month last year, according to official data released on Tuesday.

On a monthly basis, the production growth of these sectors last month rose to a four-month high.

The output of infra sectors expanded by 3.7 per cent in October 2024.

In November, production of crude oil and natural gas contracted.

The production growth of coal, refinery products, fertiliser, steel, and electricity moderated to 7.5 per cent, 2.9 per cent, 2 per cent, 4.8 per cent, and 3.8 per cent, respectively, against 10.9 per cent, 12.4 per cent, 3.3 per cent, 9.7 per cent and 5.8 per cent in November last year.

However, cement output rose to 13 per cent in the month under review.

The growth of core sectors -- coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity -- was 4.2 per cent during April-November this fiscal. It was 8.7 per cent in the same period last fiscal.

The eight core sectors contribute 40.27 per cent to the Index of Industrial Production (IIP), which measures overall industrial growth.

Commenting on the data, Aditi Nayar, Chief Economist, ICRA Ltd said that the sequential uptick in the core sector's performance was especially driven by a sharp increase in the growth of cement output, on the back of a low base.

"Looking ahead, we expect the IIP to grow by 5-7 per cent in November 2024, parlty benefitting from the uptick in the core sector growth," she said.