1st October 2024 (12 Topics)
1
Oct
2
Oct
3
Oct
4
Oct
5
Oct
7
Oct
8
Oct
9
Oct
10
Oct
11
Oct
12
Oct
14
Oct
15
Oct
16
Oct
17
Oct
18
Oct
19
Oct
21
Oct
22
Oct
23
Oct
India's Core Sector Output Contracts for the First Time in Four Years
Context
India's core sector output experienced a significant contraction of 1.8 percent in August 2024, marking the first decline in nearly four years. This follows a robust growth of 6.1 percent in July and a remarkable 13.4 percent expansion in August 2023. The slowdown is largely attributed to the high base effect from the previous year's performance.
Key-highlights:
- In August, steel output slowed to 4.5 percent against 10.9 percent in the same month last year.
- Natural gas production contracted by 3.6 percent during the month under review compared to an expansion of 10 percent in August 2023.
- India's coal production decreased by 8.1 percent in August, 2024 against an expansion of 17.9 percent in August 2023.
- Crude Oil production dipped by 3.4 per cent in August YoY in the month under review.
- India’s manufacturing PMI had slumped to a three-month low of 57.5 in August compared with 58.1 in the previous month, as demand had softened.
- The eight core sectors contribute 40.27 percent to the Index of Industrial Production (IIP) which measures overall industrial growth.
- Reason: The drop in output is primarily skewed due to last year's elevated growth figures. As a result, the average growth for the first five months of the year has now reduced to 4.6 percent, compared to 8 percent during the same period last year.
- Impact: This contraction will significantly impact industrial production, particularly as manufacturing activity has also seen a decline.
Fact Box: Core Sector
|
More Articles
Courses
Study
Notes
Home
Resources
More
