India’s Core Industries Show 2% Growth in September 2024
In September 2024, India’s Index of Eight Core Industries (ICI) grew by 2% compared to the same month last year, as reported by the Ministry of Commerce and Industry. This growth was mainly due to increased production in Cement, Refinery Products, Coal, Fertilisers, and Steel sectors. These eight core industries make up 40.27% of the Index of Industrial Production (IIP), providing a key insight into India’s industrial health.
Sectoral Performance
The Coal sector, with a 10.33% weight in the ICI, rose by 2.6% in September and showed a cumulative growth of 5.9% from April to September 2024-25. Refinery Products, the largest component with a 28.04% weight, increased by 5.8% in September and grew by 2.3% cumulatively over the same period.
Cement output saw the highest growth among the core sectors, surging by 7.1% in September, though its cumulative growth was 1.6%. Steel production increased by 1.5% year-over-year in September, with a cumulative growth rate of 6.1% from April to September. Fertiliser production grew by 1.9% in September, contributing to a cumulative growth of 1.7% over the April-September period.
Declines in Some Industries
Crude Oil production dropped by 3.9% in September and declined by 2.1% cumulatively over the April-September period. Natural Gas recorded a 1.3% decrease in September, although its cumulative index rose by 2% for April-September 2024-25. Electricity, a major component of the ICI, fell by 0.5% in September, but its cumulative growth over the first half of the fiscal year was strong at 5.9%.
Overall Growth
The cumulative growth rate for the ICI in the April-September 2024-25 period was 4.2%, indicating a modest upward trend despite sectoral challenges. In June 2024, the ICI recorded a final growth rate of 5.0%, showing resilience in certain segments.
Doubts Revealed
Core Industries -: Core industries are the main industries that are very important for the economy. In India, there are eight such industries, including coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity.
Index of Eight Core Industries (ICI) -: The Index of Eight Core Industries (ICI) is a measure that shows how well the main industries in India are doing. It helps to understand the overall health of the economy.
Cement -: Cement is a material used in construction to make buildings and roads. It is important for infrastructure development.
Refinery Products -: Refinery products are made from crude oil and include things like petrol and diesel, which are used as fuel for vehicles.
Coal -: Coal is a type of fossil fuel that is used to produce electricity and heat. It is an important energy source in India.
Fertilisers -: Fertilisers are substances added to soil to help plants grow better. They are important for agriculture.
Steel -: Steel is a strong metal used in building structures, making cars, and many other products. It is essential for industrial development.
Crude Oil -: Crude oil is a natural liquid found underground that is refined to make fuels like petrol and diesel.
Natural Gas -: Natural gas is a clean fuel used for cooking, heating, and generating electricity. It is found underground.
Electricity -: Electricity is the energy that powers our homes, schools, and gadgets. It is generated from various sources like coal, water, and wind.
Cumulative Growth Rate -: Cumulative growth rate is the total increase in production or performance over a period of time, showing how much has improved overall.