India’s core sector growth slowed to 6.1% in July, marking a decline from the 8.3% growth recorded in June. The core sector, comprising eight key industries—coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity—accounts for 40.3% of the total weight of items included in the Index of Industrial Production (IIP). This slowdown is attributed to a combination of factors, including weaker demand and adverse weather conditions affecting production and supply chains.
Source:- news 18
The reduced growth rate in July was primarily driven by lower output in key sectors. Coal production grew at 14.8% in July, down from 16.5% in June. Electricity generation increased by 6.9% in July compared to 9.5% in June, reflecting lower power demand. Refinery products also showed a decline in growth, with an increase of only 3.6% in July, compared to 4.6% in the previous month. The steel sector’s growth remained strong at 13.5%, while cement production slowed to 7.1%.
Source:- BBC news
Natural gas and crude oil continued to underperform, with natural gas production contracting by 7.6% and crude oil shrinking by 4.4%. Fertilizer production, however, showed resilience with a growth rate of 11.2%, an improvement over the 3.7% growth in June.
The deceleration in core sector growth could signal concerns for the broader economy, as these industries are critical indicators of economic health. Slower growth in these sectors may impact overall industrial production, which could affect GDP growth rates in the coming quarters. Economists suggest that while monsoon-related disruptions and global economic uncertainties may have contributed to this decline, sustained efforts to boost domestic demand and support key industries could help restore growth momentum in the months ahead. The government and policymakers will closely monitor these trends to ensure economic stability.
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