Core Sector Growth Stagnant in October as Coal, Electricity Output Drops

Growth across India’s eight core industries remained flat in October, as strong performance in petroleum refinery products, fertiliser and steel was counterbalanced by sharp contractions in coal and electricity production, government data showed on Thursday.

The eight key infrastructure sectors—coal, crude oil, natural gas, petroleum refinery products, electricity, fertiliser and steel—had grown by 3.3% in September and 3.8% in October 2024.

According to the Ministry of Commerce and Industry’s Index of Eight Core Industries, coal output fell steeply by 8.5%, electricity generation by 7.6%, and natural gas production by 5% year-on-year. Crude oil production also dipped by 1.2% during the month.

The weak performance of these sectors, which together make up over 40% of the Index of Industrial Production (IIP), could weigh on overall industrial growth for the month.