Growth of core sector output recovers to 3-month high in September

Production of eight infrastructure industries that comprise the core sector recovered to grow at 7.9 per cent in September — a three-month high — owing to a favourable base and double-digit growth in output of fertilisers, cement, and electricity.

The data released by the industry department showed output growth of coal (12 per cent), steel (6.7 per cent), electricity (11 per cent), and cement (12.1 per cent) accelerated compared to the preceding month. However, the output growth of refinery products (6.6 per cent) and fertilisers (11.8 per cent) decelerated. Crude oil (-2.3 per cent) and natural gas (-1.7 per cent) production contracted for the fourth and third consecutive months, respectively.

The cumulative growth of the core sector in the first half of FY23 (April-September) was recorded at 9.6 per cent, significantly lower than the 16.9 per cent recorded in the same period last year.

Trade Minister Piyush Goyal expressed his appreciation for the growth in the core industries in a Twitter post. “A reason why India is being called a global bright spot is the strength of its core industries (as eight core industries registered a growth of 10 per cent in April-September 2022 over the corresponding period last year),” Goyal tweeted.

Madan Sabnavis, chief economist at Bank of Baroda, said the recovery in September was a result of higher capex by the Centre as both the steel and cement registered high growth while demand for the upcoming rabi-sowing season boosted fertiliser production.

“Leaving out the oil and natural gas industries, growth was impressive in the other six sectors. Based on growth of 7.9 per cent in September, we may expect growth in the region of 4-5 per cent in (the upcoming) Index of Industrial Production (IIP),” he added.

Aditi Nayar, chief economist at ICRA, shared a similar positive sentiment regarding the upcoming IIP. “With the

Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Education News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.