India's Core Sector Growth - January 2025
India's core sector growth slightly decreased to 4.6% in January, down from 4.8% in the previous month, primarily due to a slowdown in the coal and electricity sectors.
Yearly Growth Comparison
Despite the monthly slowdown, year-on-year growth increased from 4.2% in January 2024, aided by the base effect.
Sector Analysis
- Coal and Electricity: Growth in these sectors was slower, with coal output being better than anticipated despite a decline in Coal India Ltd's production.
- Cement: Achieved a 15-month high growth of 14.5%, driven by robust demand in real estate and infrastructure.
- Refinery Products: Recorded an 8.3% growth.
- Steel: Grew by 3.7%.
- Fertilisers: Increased by 3%.
- Crude Oil and Natural Gas: Declined by 1.1% and 1.5% respectively, attributed to supply-side issues and higher imports.
Factors Influencing Growth
- Temperature Rise: Lower power demand possibly due to an unusual increase in temperatures, affecting electricity output.
Overall Core Sector Growth
From April 2024 to January 2025, core sector growth recorded 4.4% compared to 7.8% in the same period of the previous fiscal year.
Index of Industrial Production (IIP)
The core sectors contribute 40.27% to the IIP. IIP growth was 3.2% in December 2024, down from 5.2% in November.
