In September 2023, India’s combined Index of Eight Core Industries (ICI) displayed a substantial growth rate of 8.1% (provisional) compared to the figures from September 2022. This impressive performance was primarily driven by the positive growth in the production of Coal, Steel, Electricity, Natural Gas, Refinery Products, Cement, and Fertilizers during September 2023, surpassing the corresponding month of the previous year.
The ICI serves as a comprehensive measure that evaluates the collective and individual production performance of eight core industries, namely Cement, Coal, Crude Oil, Electricity, Fertilizers, Natural Gas, Refinery Products, and Steel. Notably, these Eight Core Industries hold a significant weightage of 40.27% in the Index of Industrial Production (IIP).
A revised final growth rate for the Index of Eight Core Industries for June 2023 stands at 8.4%. The cumulative growth rate for the ICI during the period of April to September 2023-24 is recorded at 7.8% (provisional) in comparison to the corresponding period of the previous year.
Here’s a succinct summary of the performance of each core industry:
- Cement (Weight: 5.37%): Cement production witnessed a growth of 4.7% in September 2023 compared to the previous year, and its cumulative index exhibited an 11.5% increase during April to September 2023-24.
- Coal (Weight: 10.33%): Coal production displayed a remarkable growth of 16.1% in September 2023 compared to September 2022, with a cumulative index growth of 12.2% during April to September 2023-24.
- Crude Oil (Weight: 8.98%): Crude Oil production experienced a slight decline of 0.4% in September 2023 compared to September 2022. The cumulative index showed a 0.4% decline during April to September 2023-24.
- Electricity (Weight: 19.85%): Electricity generation surged by 9.3% in September 2023 compared to the same month in 2022. The cumulative index witnessed a 6.0% increase during April to September 2023-24.
- Fertilizers (Weight: 2.63%): Fertilizer production grew by 4.2% in September 2023 compared to the figures from September 2022. The cumulative index recorded a 7.0% increase during April to September 2023-24.
- Natural Gas (Weight: 6.88%): Natural Gas production displayed growth of 6.5% in September 2023 compared to the same period in 2022, with a cumulative index growth of 4.3% during April to September 2023-24.
- Petroleum Refinery Products (Weight: 28.04%): Petroleum Refinery production experienced an increase of 5.5% in September 2023 compared to the previous year. The cumulative index recorded a 4.0% increase during April to September 2023-24.
- Steel (Weight: 17.92%): Steel production demonstrated substantial growth of 9.6% in September 2023 compared to the figures from September 2022. The cumulative index showcased a 14.2% increase during April to September 2023-24.
The impressive growth rates in these core industries indicate a promising economic outlook and signify a positive trend in India’s industrial sector. These sectors continue to be a significant driver of the country’s industrial production and economic performance.