The growth rate of eight major basic industries of the country dropped to two percent in the month of September. The output of eight basic industries increased 9.5 percent in the same month last year. According to official data released on Wednesday, although the growth rate of major basic industries may have decreased annually in September, the performance of basic industries has improved compared with August. We also tell you how the Government has presented the figures.
How much growth in which sector?
In August 2024, there was a 1.6 percent annual decline in production of basic industries. However, among the eight major sectors, crude oil, natural gas and energy sectors recorded negative growth in the month of September. The production of cement and refinery products increased by 7.1 percent and 5.8 percent respectively in the month under review. The overall growth of major basic sector industries has been 4.2 per cent in the first half of the current financial year, while in the same period of the last financial year it was 8.2 per cent. The eight core industries include coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and power sectors. The weight of basic industries in the Industrial Production Index (IPI) is 40.27 percent.
what the experts say
Commenting on these figures, Aditi Nair, chief economist at rating agency ICRA, said the performance of the basic sector improved in September due to lower disruptions caused by rains in sectors such as mining and power. During this period, cement production growth reached a six-month high. Nair said the ICRA has estimated a three to five per cent growth in the IIP figure in September 2024. The favorable base effect, coupled with a marginal decline in power and mining production and strong growth in GST e-transport bills, will also support activities ahead of the festive season.
