The Ministry of Commerce and Industry released figures on April 30 that showed an increase of 5.2 percent in March for India’s eight major industries.
While the previous month’s growth in India’s core sector was less than that of February 2024 (7.1 percent), it was nevertheless larger than that of March 2023 (4.2 percent).
The eight main industries—coal, crude oil, steel, cement, power, fertilizers, refinery products, and natural gas—produced 7.5 percent less in 2023–2024 year over year than in 2022–2023.
Five of the eight core sectors had a contraction in output in March, or growth at a slower rate than in February 2024. Crude oil production increased by just 2 percent in March, compared to 7.9 percent in February 2024. These factors contributed to the decline in core sector growth.
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Core Sector Growth
Production of coal increased by 8.7% compared to 11.6 % in February.
Production of natural gas increased by 6.3% compared to 11.3 % in February.
Refinery product output decreased by 0.3 percent in February compared to a growth of 2.6 percent.
Fertilizer output decreased by 1.3 percent compared to a 9.5 percent decline in February.
Steel production increased by 5.5% compared to February’s 9.1% increase.
Cement production increased by 10.6% compared to February’s 9.1%
Power output increased by 8.0 percent in February compared to 7.5 percent in January.
Given that the eight core sectors account for more than 40% of the weight of the Index of Industrial Production (IIP), the slower rise in core sector output in March suggests that industrial growth as measured by the IIP may also veer downward.
On May 12, information about the March IIP growth will be made available. IIP increased from 4.14 percent in January to 5.7 percent in February.