The core sector comprising coal, crude oil, steel, cement, electricity, fertilisers, refinery products and natural gas, had grown 4.6% in April 2023.
Except fertiliser, the output of all other industries rose in April, according to data released by the commerce and industry ministry.
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“April has been the time when there has been less focus on spending by the government given the ongoing Elections. Hence the numbers must be read with caution,” said Madan Sabnavis
chief economist, Bank of Baroda.
Crude oil production was up 7.5% in April while natural gas and refineries output grew 8.6% and 3.9%, respectively driven by demand conditions.
Steel output rose 7.1% and that of cement increased 0.6%.
“The decline in the cement output growth in April 2024 partly reflects a high base, and could also be dampened by some slowdown in government capex during the Parliamentary elections,” said Aditi Nayar, chief economist, ICRA.
Coal output was up 7.5% and electricity generation rose 9.4% in April. Fertiliser production contracted 0.8% and has shrunk for the fourth consecutive month.
Cumulatively, the growth rate in the output of these eight sectors slowed to 7.6% in FY24 as against 7.8% in the previous fiscal.
The eight core sectors have a 40.27% share in the country’s Index of Industrial Production (IIP). Economists expect the IIP to record an expansion of 6-6.5% in April. The IIP had slowed to 4.9% in March 2024 from 5.6% in February.
