Core sector grows 5.4% in Nov aided by higher coal, cement production
NEW DELHI: Production of eight infrastructure sectors increased by 5.4 per cent in November against a 3.2 per cent growth in the same month last year on a better show by coal, fertiliser, steel, cement and electricity segments, according to the official data released on Friday.
Crude oil, natural gas and refinery products, however, recorded negative growth in November this year. The production growth of eight key sectors slowed down to 0.9 per cent in October.
The growth rate of eight infrastructure sectors — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity — stood at 8 per cent in April-November this fiscal as against 13.9 per cent during the same period last fiscal.
The production of coal rose by 12.3 per cent, fertiliser by 6.4 per cent, steel by 10.8 per cent, cement by 28.6 per cent and electricity by 12.1 per cent in November 2022 compared to a year ago.
Core sectors industries, which have 40.27 per cent weight in the overall index of industrial production (IIP), would also have a bearing on industrial production data.
The IIP data for November is expected to be released by the government in the second week of January 2023.
Commenting on the figures, Aditi Nayar, Chief Economist, ICRA, said that while the IIP will also display an improvement to a growth of 3-4 per cent in November 2022 from the contraction in the previous month, its performance may trail that of the core industries, given the drag imposed by weaker exports.
Ind Ra said that the recovery underway is not broad-based as three sectors – refinery products, crude oil and natural gas continue to pull down the year-on-year growth in the core sector output in November.
“Nevertheless, the pick-up in the year-on-year growth of eight-core sectors in November 2022 would provide succour to the industrial output growth,” it said.
India Ratings and Research (Ind-Ra) expects that the IIP to recover to grow in low-single digits in November from a contraction of 4 per cent year on year in month-ago.