In a positive sign for the economy, the combined Index of Eight Core Industries (ICI) showed robust growth, surging by 8.2 percent (provisional) in June 2023 when compared to the figures from the same period last year. The growth rate was not only a five-month high figure but also compares well with the 5 percent growth recorded in the preceding month of May 2023.
The Eight Core Industries, comprising key sectors like Steel, Coal, Cement, Refinery Products, Natural Gas, Fertilizers, and Electricity, have been instrumental in driving India’s industrial production. The ICI not only captures the collective performance of these industries but also provides valuable insights into their individual contributions.
The star performers in June 2023 were Steel, Coal, Cement, Refinery Products, Natural Gas, Fertilizers, and Electricity, all of which witnessed a notable upswing in production when compared to June 2022.
Steel, with a significant weightage of 17.92 percent in the ICI, saw an impressive surge of 21.9 percent in production during June 2023. This surge contributed to an overall cumulative growth rate of 15.9 percent during the quarter of April to June 2023-24, compared to the corresponding period of the previous year.
Coal, another essential component of the ICI with a weightage of 10.33 percent, saw its production increase by 9.8 percent in June 2023 over the figures recorded in June 2022. Moreover, during the same quarter, the cumulative index for Coal production rose by 8.7 percent, highlighting its crucial role in the industrial growth story.
Cement production, accounting for 5.37 percent in the ICI, also displayed significant growth of 9.4 percent in June 2023 compared to the same month the previous year. The cumulative index for Cement during April to June 2023-24 soared by 12.2 percent, a positive sign for the construction and infrastructure sectors.
The Refinery Products sector, with a weightage of 28.04 percent, registered an encouraging increase of 4.6 percent in June 2023 over June 2022. The cumulative index for Refinery Products also experienced a notable 1.9 percent growth during the same quarter.
Natural Gas production, weighing 6.88 percent in the ICI, witnessed a modest increase of 3.6 percent in June 2023 compared to June 2022. Although the growth was relatively subdued, the cumulative index for Natural Gas in the April to June 2023-24 period edged up by 0.1 percent.
Fertilizers, with a weightage of 2.63 percent, recorded a 3.4 percent growth in June 2023 over the figures from June 2022. Notably, the cumulative index for Fertilizers during the April to June 2023-24 period surged by an impressive 11.3 percent.
Electricity generation, contributing 19.85 percent to the ICI, experienced a 3.3 percent increase in June 2023 compared to June 2022. Despite a relatively moderate growth rate, the cumulative index for Electricity generation during April to June 2023-24 ticked up by 1.0 percent, reaffirming the sector’s essential role in powering the nation’s industries.
Furthermore, the Final Growth Rate of the Index of Eight Core Industries for March 2023 has been revised upwards to 4.2 percent from its provisional level of 3.6 percent. This revision indicates a stronger performance than previously estimated, boding well for the overall economic outlook.