Core Industries Index Sees 1.8% Decline in August 2024

The Index of Eight Core Industries registered a 1.8% decline in August 2024, driven by negative growth in sectors such as coal, crude oil, natural gas, and electricity. However, steel and fertilizer sectors showed positive growth. The cumulative growth rate for April-August 2024 stood at 4.6%.

The combined Index of Eight Core Industries (ICI) recorded a 1.8 percent decline in August 2024 compared to the same month last year, according to provisional data. This downturn was fueled by negative growth in key sectors including coal, crude oil, natural gas, petroleum refinery products, cement, and electricity. Only the steel and fertilizer sectors registered positive growth in August 2024.

The Index evaluates the collective and individual performance of eight core industries, which together constitute 40.27 percent of the weight of items included in the Index of Industrial Production (IIP). Despite the August setback, the cumulative growth rate from April to August 2024-25 stood at 4.6 percent, compared to the same period last year.

Sector-wise breakdown revealed that coal production, responsible for 10.33 percent of the Index, decreased by 8.1 percent in August 2024 over the previous year. Crude oil production, holding 8.98 percent of the Index, fell by 3.4 percent, while natural gas production, accounting for 6.88 percent, declined by 3.6 percent. Petroleum refinery products, the largest constituent with 28.04 percent weight, saw a 1.0 percent decline.

Despite these declines, fertilizer production increased by 3.2 percent, and steel production grew by 4.5 percent in August 2024. Cement production fell by 3.0 percent, and electricity generation declined by 5.0 percent. For the cumulative period from April to August 2024, coal's index increased by 6.5 percent, crude oil fell by 1.7 percent, natural gas rose by 2.6 percent, and petroleum refinery products increased by 1.7 percent. Fertilizers rose by 1.7 percent, steel by 7.3 percent, cement by 0.7 percent, and electricity by 6.8 percent.

(With inputs from agencies.)