India's Eight Core Industries Index Soars by 6.2% in April 2024, Signaling Strong Industrial Growth

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India's Eight Core Industries Index Soars by 6.2% in April 2024, Signaling Strong Industrial Growth

Team FS

03/Jun/2024

Key Points:

The Index of Eight Core Industries (ICI) increased by 6.2% in April 2024 compared to April 2023.
Significant growth was recorded in Electricity, Natural Gas, Coal, Steel, and Refinery Products.
The cumulative growth rate for 2023-24 stood at 7.6% compared to the previous year.

The Index of Eight Core Industries (ICI), a crucial measure of India's industrial performance, recorded an impressive growth of 6.2% in April 2024 compared to the same month in the previous year. This growth highlights the robust expansion in several key sectors of the economy, reflecting the ongoing strength and resilience of India's industrial landscape.

Breakdown of Sector Performance

The ICI comprises eight core industries: Electricity, Natural Gas, Coal, Steel, Refinery Products, Crude Oil, Cement, and Fertilizers, which together represent 40.27% of the weight of items included in the Index of Industrial Production (IIP). These industries are pivotal to the overall industrial growth and economic stability of the country.

Cement Production

Weight: 5.37%
April 2024 Growth: 0.6%
Cumulative Growth in 2023-24: 9.0%

Coal Production

Weight: 10.33%
April 2024 Growth: 7.5%
Cumulative Growth in 2023-24: 11.8%

Crude Oil Production

Weight: 8.98%
April 2024 Growth: 1.6%
Cumulative Growth in 2023-24: 0.6%

Electricity Generation

Weight: 19.85%
April 2024 Growth: 9.4%
Cumulative Growth in 2023-24: 7.1%

Fertilizer Production

Weight: 2.63%
April 2024 Decline: -0.8%
Cumulative Growth in 2023-24: 3.7%

Natural Gas Production

Weight: 6.88%
April 2024 Growth: 8.6%
Cumulative Growth in 2023-24: 6.1%

Petroleum Refinery Products

Weight: 28.04%
April 2024 Growth: 3.9%
Cumulative Growth in 2023-24: 3.6%

Steel Production

Weight: 17.92%
April 2024 Growth: 7.1%
Cumulative Growth in 2023-24: 12.4%

Revised Growth Rate for January 2024

The final growth rate of the ICI for January 2024 has been revised to 4.1%, reflecting adjustments in data collection and analysis. This revision provides a more accurate picture of the industrial growth trends during the early months of 2024.

Cumulative Growth Rate

The cumulative growth rate of the ICI during 2023-24 stands at 7.6% compared to the corresponding period last year. This sustained growth indicates a positive trajectory for India's core industries, contributing significantly to the overall economic development.

Key Drivers of Growth

Electricity Generation

Electricity generation, with the highest weight in the ICI at 19.85%, showed a remarkable increase of 9.4% in April 2024. This sector's robust performance is crucial as it supports other industries by providing the necessary power for operations and growth.

Coal Production

Coal production, which holds a weight of 10.33%, grew by 7.5%. The consistent demand for coal in power generation and industrial use underpins this sector's substantial contribution to the ICI.

Steel Production

Steel production, weighted at 17.92%, increased by 7.1% in April 2024. The steel industry is a cornerstone of industrial development, supplying essential materials for construction, manufacturing, and infrastructure projects.

Natural Gas and Refinery Products

Natural gas production and petroleum refinery products also recorded significant growth, with increases of 8.6% and 3.9%, respectively. These sectors are vital for energy supply and industrial processes, further bolstering the overall industrial performance.

Challenges and Outlook

While most sectors showed positive growth, fertilizer production experienced a slight decline of 0.8% in April 2024. However, the cumulative growth for fertilizers remains positive at 3.7% for 2023-24, indicating resilience in the agricultural support sector.

The strong performance of India's core industries, as reflected in the April 2024 ICI data, suggests a robust foundation for sustained industrial growth. The positive trends in electricity, coal, steel, and other key sectors indicate a healthy industrial ecosystem capable of supporting broader economic objectives.

Conclusion

The 6.2% growth in the Index of Eight Core Industries (ICI) for April 2024 underscores the strength and resilience of India's industrial sector. With continued investments, policy support, and technological advancements, India's core industries are well-positioned to drive economic growth and development in the coming years. As these industries thrive, they will play a pivotal role in achieving the nation's ambitious economic targets and enhancing its global industrial footprint.

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India's Eight Core Industries Index Soars by 6.2% in April 2024, Signaling Strong Industrial Growth

Breakdown of Sector Performance

Cement Production

Coal Production

Crude Oil Production

Electricity Generation

Fertilizer Production

Natural Gas Production

Petroleum Refinery Products

Steel Production

Revised Growth Rate for January 2024

Cumulative Growth Rate

Key Drivers of Growth

Electricity Generation

Coal Production

Steel Production

Natural Gas and Refinery Products

Challenges and Outlook

Conclusion

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