In June 2023, India’s core sector witnessed a significant jump in growth, reaching a five-month high of 8.2%. This growth marks the highest level since January 2023, when the key sectors expanded at 9.7%. However, it is worth noting that the core sector growth rate has declined from 13.1% in June 2022. During the first quarter (Q1), the output by the eight core sector industries dropped to 5.8% from the corresponding quarter in the previous fiscal year, which recorded a growth of 13.9%.
Key Highlights of Core Sector Growth in India
- The core sector in India witnessed a significant surge, reaching a five-month high of 8.2% in June 2023.
- This growth rate stands as the highest level of expansion since January 2023, when key sectors expanded at 9.7%, signifying a strong recovery.
- Despite the impressive growth, the core sector’s performance experienced a decline from 13.1% in June 2022, showcasing fluctuations in economic trends.
- During the first quarter (Q1), the sector-wise growth rate of the eight core industries declined to 5.8% from the higher growth rate of 13.9% in the corresponding quarter of the previous fiscal year.
- Seven out of the eight core sectors, including Steel, Coal, Cement, Refinery Products, Natural Gas, Fertilizers, and Electricity, displayed positive growth in their production, contributing to the overall sector’s advancement.
Sector-Wise Growth Rate Performance
Steel, Coal, Cement, Refinery Products, Natural Gas, Fertilizers, and Electricity – Seven out of the eight core sector industries reported an increase in production. The remarkable growth in these sectors signifies a positive trend in the Indian economy.
Coal Sector – The production in the coal sector witnessed a significant increase of 9.8% in June 2023. Moreover, its cumulative index increased by 8.7% during the April-June quarter compared to the same period last fiscal year.
Natural Gas – Natural Gas production experienced a noteworthy growth of 3.6% in June 2023, and the cumulative index increased by 0.1% during the quarter ending June 2023.
Petroleum Refinery Products – The production growth in Petroleum Refinery Products reached 4.6% in June 2023, with the cumulative index increasing by 1.9% during the April-June quarter.
Fertilisers – Fertilizer production witnessed growth of 3.4% during June 2023, and the cumulative index increased by 11.3% during the first quarter of the fiscal year 2023-24.
Steel Sector – The steel sector achieved an outstanding jump of 21.9% in production during June 2023. Additionally, the cumulative index increased by 15.9% during the quarter from April to June 2023-24, compared to the corresponding period of the previous year.
Cement Sector – The production in the cement sector grew by an impressive 9.4% in June 2023. The cumulative index also witnessed a substantial increase of 12.2% during the first quarter of fiscal year 2023-24.
Electricity Generation – The growth in electricity generation during June 2023 was recorded at 3.3%, and the cumulative index increased by 1% during the April-June quarter.
The Decline in Core Sector Growth from the Previous Year
Despite the significant growth in June 2023, it is essential to note that the core sector’s growth declined from 13.1% in June 2022. This comparison highlights the fluctuations in the sector’s performance over time.
Output Decline in Q1 for Core Sector Industries
During the first quarter (Q1) of the fiscal year, the output of the eight core sector industries witnessed a decline to 5.8%, compared to the corresponding quarter in the previous fiscal year, which had recorded a growth of 13.9%.
The remarkable 8.2% surge in India’s core sector growth in June 2023 shows a strong economic recovery in key industries. Despite a decline from the previous year, this growth indicates promising signs for the Indian economy’s revival and sets the stage for future development and progress.
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