Core sector reaches 7.8% in January 2023

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India’s core production increased by 7.8% YoY in January 2023, the fastest pace in four months, due to a lower base and strong performance across most sectors, according to a report from the Ministry of Commerce and Industry.

According to the report, the output of five sectors including coal, electricity, natural gas, refinery products, and fertilisers, increased by 13.4%, 12%, 5.3%, 4.5%, and 17.9%, respectively. Additionally, steel and cement were up by 6.2%, and 4.6%, respectively. 

Experts said that growth in fertilisers was due to supplies for non-farm sectors, and the replenishing of inventory, The growth in the steel and cement sectors was aided by infrastructure activity taking off due to government push. Index of Industrial Production (IIP) growth for January can be expected at 5-6%.

Media reports said that the eight core industries account for 40.27% of the weighting of the items included in the IIP.

On the other hand, the cumulative growth rate of the Index of Core Industries (ICI) from April-January 2022-23 stood at 7.9% YoY.

Source: Business Standard

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