Core Industries Show Resilient Growth in November 2024; Cement and Coal Lead the Way

The combined Index of Eight Core Industries (ICI) demonstrated robust growth, increasing by 4.3% in November 2024 compared to November 2023. Positive contributions from Cement, Coal, Steel, Electricity, Refinery Products, and Fertilisers drove the index upward, underscoring the strength of India’s core industrial sectors.

The Eight Core Industries – Coal, Crude Oil, Natural Gas, Refinery Products, Fertilisers, Steel, Cement, and Electricity, constitute 40.27% of the weight in the Index of Industrial Production (IIP), making their performance a crucial indicator of industrial health.

Cumulative Growth Highlights

The ICI’s cumulative growth rate for April to November 2024-25 stood at 4.2% (provisional), reflecting consistent performance compared to the same period in the previous year. However, the final growth rate for August 2024 showed a decline of 1.5%, highlighting a mixed trajectory during the year.

Sectoral Performance Overview

1. Coal

Coal production, carrying a weight of 10.33%, surged by 7.5% in November 2024 compared to November 2023. Cumulatively, coal output increased by 6.4% from April to November 2024-25 over the corresponding period last year.

 2. Crude Oil

Crude oil production, weighted at 8.98%, declined by 2.1% in November 2024 compared to the previous year. Its cumulative output also fell by 2.4% from April to November 2024-25, signalling challenges in the sector.

 3. Natural Gas

Natural gas production, with a weight of 6.88%, recorded a marginal decline of 1.9% in November 2024 year-on-year. However, its cumulative index grew by 1.1% from April to November 2024-25, reflecting a modest recovery over time.

 4. Petroleum Refinery Products

Petroleum refinery products, the heaviest component with a weight of 28.04%, saw a 2.9% increase in production in November 2024 compared to November 2023. Cumulatively, the sector grew by 2.7% from April to November 2024-25.

 5. Fertilisers

Fertiliser production, with a 2.63% weight, grew by 2.0% in November 2024 compared to the previous year. Cumulative growth for April to November 2024-25 reached 1.6%, maintaining steady progress.

 6. Steel

Steel production, holding a weight of 17.92%, increased by 4.8% in November 2024 over the same month in 2023. The sector’s cumulative growth rate stood at 5.9% from April to November 2024-25, showcasing solid performance.

 7. Cement

Cement production, accounting for 5.37% of the index, recorded the highest growth among core industries, surging by 13.0% in November 2024 compared to November 2023. Cumulatively, cement production increased by 3.1% during April to November 2024-25.

 8. Electricity

Electricity generation, with a significant weight of 19.85%, rose by 3.8% in November 2024 year-on-year. The sector posted a cumulative growth of 5.3% during April to November 2024-25.

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