The Index of Eight Core Industries (ICI) recorded a 1.8 percent decline in August compared to the same period last year, according to provisional data. The drop was driven by negative growth in coal, crude oil, natural gas, petroleum refinery products, cement, and electricity production. Only steel and fertilizers showed an uptick in output during the month.
The ICI tracks the combined and individual performance of eight core industries, which together contribute 40.27 percent to the Index of Industrial Production (IIP).
From April to August 2024-25, the cumulative growth rate of the Eight Core Industries stood at 4.6 percent, reflecting an overall increase compared to the same period last year.
Sector-wise Performance:
– Coal: Coal production, which holds a weightage of 10.33 percent in the ICI, saw an 8.1 percent decrease in August 2024 compared to August 2023. However, its cumulative index rose by 6.5 percent during April to August 2024-25.
– Crude Oil: Crude oil production, accounting for 8.98 percent of the ICI, fell by 3.4 percent in August 2024. The cumulative index for crude oil also showed a decline of 1.7 percent during the April-August period.
– Natural Gas: Natural gas production, with a 6.88 percent share, dropped by 3.6 percent in August 2024, though its cumulative index rose by 2.6 percent during April to August 2024-25.
– Petroleum Refinery Products: With the highest weightage of 28.04 percent, petroleum refinery products saw a 1.0 percent decrease in August 2024. Despite this, the cumulative index increased by 1.7 percent during the April-August period.
– Fertilizers: Fertilizer production, which holds a weightage of 2.63 percent, grew by 3.2 percent in August 2024, and its cumulative index increased by 1.7 percent for April to August 2024-25.
– Steel: Steel production, which contributes 17.92 percent to the ICI, registered a 4.5 percent rise in August 2024. The cumulative index for steel rose by 7.3 percent over the April-August period.
– Cement: Cement production, accounting for 5.37 percent of the index, saw a 3.0 percent decline in August 2024, though the cumulative index increased slightly by 0.7 percent for the April-August period.
– Electricity: Electricity generation, with a weight of 19.85 percent, declined by 5.0 percent in August 2024. Its cumulative index, however, showed a 6.8 percent increase for the April-August period.
(ANI)