Core sector growth slows to 4% in December 2024; natural gas output declines: Govt data

The growth in production of eight core infrastructure sectors slowed down to 4% in December 2024 from 5.1% in the same month a year ago, according to official data released on Friday.

The output of coal, electricity, steel, cement, refinery products, fertilisers, and crude oil recorded positive growth in December 2024, while natural gas production declined by 1.8%, as per the data from the commerce and industry ministry.

The eight core industries—coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity—comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).

The cumulative growth rate of the Index of Eight Core Industries (ICI) during April-December 2024-25 stood at 4.2%, the data showed.

Among the individual sectors, coal production rose 5.3% in December 2024, while crude oil output increased marginally by 0.6%. Refinery products and fertilizers recorded growth of 2.8% and 1.7%, respectively.

Steel and cement production increased by 5.1% and 4%, respectively, while electricity generation grew by 5.1% during the month under review.

However, natural gas production contracted by 1.8% in December 2024 compared to the year-ago period.

The final growth rate of the index for September 2024 was revised to 2.4%. The data for October, November, and December 2024 remain provisional.

The core sector data is considered crucial for policymakers as it provides an early indicator of industrial production and overall economic activity. The government will release the index for January 2025 on February 28.