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The eight core industries’ output growth eased in September 2023 to 8.1 per cent, lower than August’s 14-month high of 12.1 per cent. The Government has now revised upwards the August 2023 print to 12.5 per cent.
The latest reading is also lower than the 8.3 per cent growth recorded in September last year.
Except for crude oil, which contracted 0.4 per cent, the other seven industries recorded positive growth in September 2023. Coal output continued to shine, with 16.1 per cent growth in September 2023, higher than the 12.1 per cent growth seen in September last year. It was slightly lower than the robust 17.9 per cent growth seen in August this year.
The eight core industries — Coal, Natural Gas, Crude Oil, refinery products, fertilisers, Cement, Steel and Electricity — comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).
For April-September 2023, the core industries’ output grew 7.8 per cent (provisional) as compared to 9.8 per cent in the same period last year.
In fiscal 2022-23, the core industries’ output grew 7.6 per cent, lower than 10.4 per cent growth in the previous fiscal.
Meanwhile, the Commerce and Industry Ministry has revised the core industries’ output for June 2023 to 8.4 per cent.
OTHER INDUSTRIES
For September 2023, natural gas output grew 6.5 per cent (-1.7 per cent); refinery products 5.5 per cent (6.6 per cent); fertilisers 4.2 per cent (11.8 per cent); steel 9.6 per cent (7.7 per cent); cement 4.7 per cent (12.4 per cent) and electricity 9.3 per cent (11.6 per cent).
EXPERT TAKE
Aditi Nayar, Chief Economist, Head - Research & Outreach, ICRA Ltd, said: ”A pick-up in rainfall expectedly flattened core sector expansion in September 2023 to a four-month low of 8.1 per cent from 12.5 per cent in August 2023, amid a slowdown in growth of seven of the eight constituent sectors, barring fertiliser output”.
IIP growth is likely to moderate in the high single digits in September 2023, taking a cue from the core sector’s trajectory, she added.
Madan Sabnavis, Chief Economist, Bank of Baroda said that the infra industries continue to witness buoyancy which is a good sign. “Power sector growth reflects industrial activity. Cement and steel do well again as infrastructure focus of government as well as construction industry are doing well. Fertilizers too have shown steady growth as it prepares for rabi sowing”, he said. Industrial growth could be in 6 per cent range for September, he added.
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