Core Industries Growth Slips To Seven-Month Low
The index of eight core industries rose 4.4% in September compared with a revised growth of 11.5% in August 2021.
India’s core sectors grew at the slowest pace since February as growth for most industries eased.
The index of eight core industries rose 4.4% in September compared with a revised growth of 11.5% in August 2021, according to data released by the Ministry of Commerce & Industry on Friday. The index contracted 5% month-on-month against a decline of 1% in August.
With the base effect wearing off and copious rainfall dampening mining and construction activities, as well as demand for electricity, the slide in core sector growth was in line with expectations, Aditi Nayar, achief economist at ICRA, said.
Lower core sector growth and the impact of semiconductor shortages on auto output are expected to dampen the September 2021 IIP growth to 3-5%, despite the pre-festive season inventory buildup suggested by the GST e-way bill data, she said.
Internals
Coal production rose 8.1% in September compared with a rise of 20.6% in August.
Crude oil production declined 1.7% compared with a fall of 2.3% in the preceding month.
Natural gas production rose 27.5% after an increase of 20.7% in August.
Production of refinery products rose 6% in September after a rise of 9.1% in the preceding month.
Fertilisers production was flat after a fall of 3.1% in August 2021.
Steel production rose 3% compared with a growth of 3.9% in August.
Cement production rose 10.8% in September after increasing 36.3% in August.
Electricity generation rose 0.3% after rising 16% in August 2021.