India's Industrial Core Shows Diverse Growth: Cement Leads the Way

India’s Index of Eight Core Industries (ICI) sees a 2% growth in September 2024, driven by Cement, Refinery Products, and Coal sectors. Notable improvements were observed in these sectors despite mixed performance among other key areas like Steel and Fertilisers. Crude Oil and Natural Gas faced declines.

The Ministry of Commerce and Industry reported a 2% growth in India's Index of Eight Core Industries (ICI) for September 2024. This increase, revealed on Wednesday, highlights advancements in Cement, Refinery Products, and Coal sectors, significant contributors to the overall industrial health of the nation.

The eight core industries, forming 40.27% of the Index of Industrial Production (IIP), are vital indicators. The data presents mixed results: the Coal sector, weighing 10.33% in ICI, rose 2.6% in September and cumulatively increased by 5.9% for the April-September period. Similarly, the largest sector, Refinery Products, which holds 28.04%, recorded a substantial rise of 5.8% for September, contributing to a cumulative growth of 2.3%.

Cement led growth with a 7.1% surge in September, yet its cumulative growth was a modest 1.6%. The Steel sector's slight uptick of 1.5% year-over-year in September translated to substantial cumulative growth of 6.1% for April-September. Fertiliser production increased 1.9% for the month, rounding out a 1.7% growth over the same period.

Conversely, certain industries experienced downturns. Crude Oil production dropped 3.9% in September, with a 2.1% cumulative decline. Natural Gas fell 1.3% in September, but its cumulative rate rose by 2% for April-September 2024-25.

Electricity, a major ICI component, decreased 0.5% in September but maintained a solid 5.9% cumulative growth during the fiscal first half. Overall, the ICI's cumulative growth rate for April-September stood at 4.2%, signaling a moderate upward trajectory despite sector challenges.

(With inputs from agencies.)