India’s core sector exhibited a robust growth rate of 6.1% in July 2024, a significant rebound from the 4% growth recorded in June. This growth reflects the performance of key industries such as coal, electricity, steel, and cement, showcasing resilience in India’s economic landscape. The Commerce Ministry released this data on August 30, 2024, highlighting the continuing upward trajectory of core sector industries.

Sector-Wise Performance

Steel Production: Steel output reached a three-month high of 7.2% growth in July, up from 6.7% in June. This indicates a strong demand and expansion in the steel industry.

Cement Output: Cement production surged to a four-month high of 5.5%, a significant increase from the 1.9% recorded in the previous month. This rise reflects heightened construction activity.

Petroleum Production: The petroleum sector recorded an eight-month high growth of 6.6%, supported by increased demand.

Fertilizer Output: Fertilizer production grew by 5.3%, reaching a seven-month high, driven by robust kharif sowing due to a favorable monsoon.

Coal and Electricity: Coal production increased by 6.8%, while electricity generation grew by 7.0%, signaling strong energy sector performance.

Declines in Other Areas

Crude Oil Production: Crude oil output declined by 2.9% in July, continuing a trend of contraction.

Natural Gas Production: Natural gas production fell by 1.3% in July, although its cumulative index showed a 4.3% increase for the April-July period.

Economic Outlook

The Finance Ministry remains optimistic about India's economic prospects. The monthly report for July 2024 highlights that the economic momentum is intact despite some erratic monsoon patterns. Key indicators such as manufacturing and services expansion, as shown by Purchasing Managers’ indices, and growing tax collections, particularly indirect taxes, reflect a healthy economic environment.

Inflation is moderating, and both goods and services exports are performing better compared to last year. The stock markets are stable, and foreign direct investment (FDI) is on the rise, signaling positive economic health.

Overall, the growth in the core sector, coupled with a favorable economic outlook, underscores India's ongoing economic resilience and expansion.

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