India’s Core Sector Growth Rises 6.2% in April

In April, India’s core sector, comprising coal, steel, cement, fertilizers, electricity, natural gas, refinery products, and crude oil, witnessed a notable 6.2% growth, reflecting positive momentum in key industries. This growth, driven by robust performances in sectors such as steel, electricity, and natural gas, contrasts with the 4.6% growth recorded in April 2023. However, it’s essential to note that March’s growth figures were revised upward to 6%, indicating a stronger trajectory than previously estimated.

Sectoral Performance and Insights

Steel Sector

The steel sector exhibited a healthy 9.4% rise in April 2024, possibly propelled by demand from consumer durables, according to Aditi Nayar, chief economist at ICRA.

Cement Sector

Although witnessing marginal positive growth in April, the cement sector experienced a sequential contraction of 12%, partly attributed to a high base and potential slowdown in government capex during parliamentary elections.

Overall Sectoral Growth

Apart from fertilizers, all sectors demonstrated positive growth, albeit some driven by a low base effect. Fertilizer output saw a decline of 0.8%, primarily due to comparably high growth recorded in April last year.

Long-term Recovery Outlook

While the core sector’s April performance surpassed pre-COVID levels by 19.8% (February 2020), the recovery trajectory varies across industries. Sectors like coal, crude oil, and refinery products are still lagging, with growth rates of just 1.3%, 0.9%, and 7%, respectively, compared to pre-pandemic levels. This indicates the need for sustained efforts for a broad-based and comprehensive recovery, as highlighted by Sunil Sinha, principal economist at India Ratings and Research (Ind-Ra).

Piyush Shukla

Recent Posts

Epigamia Co-Founder Rohan Mirchandani Passes Away 42

Rohan Mirchandani, the co-founder of the popular brand Epigamia, tragically passed away at the age…

32 mins ago

India Clinches Women’s U19 T20 Asia Cup title

India clinched the inaugural U10 Women's Asia cup T20 title by defeating Bangladesh by 41…

1 hour ago

Govt Infuses ₹500 Cr in IFCI to Boost Financial Health

The Indian government has decided to infuse ₹500 crore into the state-owned Industrial Finance Corporation…

1 hour ago

Top-10 Tourist Places in Uttar Pradesh, Check the List

Uttar Pradesh, a state in northern India, is home to many famous tourist attractions. From…

1 hour ago

Kejriwal Launches Dr Ambedkar Scholarship for Dalit Students Abroad

Arvind Kejriwal, the AAP supremo, unveiled the Dr Ambedkar Samman Scholarship, a scheme designed to…

2 hours ago

Govt Forms Committee to Assess IAF’s Capability Development Amid Rising Threats

The Indian Government has formed a high-level committee under Defence Secretary Rajesh Kumar Singh to…

2 hours ago