Reading this on Krawl? Register for free.
Unlock listen-aloud, reading history and personalised feeds — at zero cost.
Free registration unlocks the full Finance Desk
India's Core Sector Growth Slows to 4.8% in August, Driven by Key Contractions
India's core sector recorded a growth rate of 4.8% in August, a slight deceleration from July's 5.0%. This slowdown was primarily driven by contractions in critical areas such as coal, natural gas, crude oil, and fertilizers. The data indicates a…
Core Sector Growth Decelerates in August
India's core sector output expanded by 4.8% in August, marking a slight decrease from the 5.0% growth observed in July. This moderation reflects a mixed performance across key foundational industries during the month.
Key Contributors to the Slowdown
The deceleration was primarily attributable to contractions in several vital sub-sectors. Coal production saw a decrease of 7.2%, while natural gas output declined by 3.6%. Crude oil production also contracted, dropping by 2.3%, and the fertilizers sector experienced a reduction of 2.5%. These declines collectively weighed on the overall core sector performance, dampening the growth trajectory established in the prior month.
Conversely, some sectors registered positive growth. Electricity generation expanded by 5.4%, cement production increased by 6.0%, and steel output grew by 4.7%. Refinery products showed modest growth at 2.6%. The varied performance across these eight core industries—which collectively represent 40.27% of the Index of Industrial Production (IIP)—provides insight into the underlying dynamics of India's industrial activity.
Found this useful? Share it!
Interested in Finance Education?
Explore our CFA and investing courses — built for serious learners.
