India’s core industrial output hits a 5-month high at 8.2% in June 2023

In June 2023, the Index of Eight Core Industries (ICI) recorded a substantial increase of 8.2%, marking its highest growth rate in five months. 

The “Eight Core Industries” comprises a total of eight sectors, as the name implies. These sectors are Crude oil, Coal, Natural Gas, Refinery products, Fertilizers, Steel, Cement, and Electricity. 

In June 2023, all seven core industries, except for Crude Oil which experienced a marginal contraction of 0.6%, demonstrated positive growth. The seven sectors, namely Steel, Coal, Cement, Refinery Products, Natural Gas, Fertilizers, and Electricity, reported an increase in production. 

The growth in the core sector however declined from 13.1% during June 2022. This is the highest level of growth the core sector has registered since January 2023, when the key sectors expanded at 9.7%. During Q1, the output by the eight core sector industries declined to 5.8% from 13.9% during the corresponding quarter last fiscal. 

If we examine the growth sector wise then, the coal sector experienced an increase of 9.8% in production, contributing to an 8.7% rise in its cumulative index compared to the same period in the previous fiscal year. 

Natural Gas production surged by 3.6% in June 2023, contributing to a slight 0.1% growth in its cumulative index for the quarter ending in June 2023. 

Petroleum Refinery Products achieved a production growth rate of 4.6% in June 2023, contributing to a 1.9% increase in its cumulative index during the April-June quarter. 

Fertilizer production saw steady growth of 3.4% in June 2023, leading to an impressive 11.3% increase in its cumulative index for the first quarter of FY24. 

The steel sector witnessed a remarkable surge of 21.9% in production during June 2023, resulting in a significant 15.9% increase in its cumulative index for the quarter from April to June 2023-24, compared to the corresponding period in the previous year. 

The cement sector’s production grew by 9.4% in June 2023, contributing to a cumulative index growth of 12.2% during the first quarter of fiscal year 2023-24. 

Despite facing a higher base for comparison, both the steel and cement sectors performed admirably, primarily attributed to the Government’s emphasis on infrastructure development. 

Electricity generation showed moderate growth of 3.3% in June 2023, with the cumulative index increasing by 1% during the April-June quarter. 

These eight core industries account for 40.27% of the item’s weight included in the Index of Industrial Production (IIP). 

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