India's core sector growth hits four-month high of 4.3% in November
Subscribe to enjoy similar stories. NEW DELHI : India's infrastructure output, which accounts for about two-fifths of industrial production, jumped to a four-month high in November, driven by a rise in six of the eight core constituent sectors during the month. The index of the eight core industries rose an annual 4.3% in November, up from 3.7% in October, according to provisional data released by the Ministry of Commerce and Industry on Tuesday.
It had expanded by 2.4% in September and contracted by 1.5% in August. A year ago, the output of the eight core industries—coal, crude oil, steel, cement, electricity, fertilisers, refinery products and natural gas—had expanded by 7.9% year-on-year. The provisional data for September, October and November could be revised next month.
The rebound in manufacturing could significantly affect industrial production in November, data for which will be released in January. Despite the recent uptick, growth in the core sectors during the first eight months of the current fiscal year stood at 4.25% on average, significantly lower than the 8.68% rise recorded in the same period of FY24. Experts attribute the decline to a high base effect and weaker performance in sectors like crude oil and natural gas.
“There has been a pick up in infra activity, as seen also in government spending more on capex this month. Construction of homes also showed momentum and was reflected in steady growth in steel and cement. Low fertilizer output reflecs higher inventories being used.
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