Core sector growth at 3.8% in Dec, slowest in 14 months

Coal output grew 10.6%, the lowest since May 2023, which may reflect slow industrial activity.

- Dhirendra Kumar & Rhik Kundu

Output in the eight core infrastructure sectors that account for two-fifths of India's industrial output expanded at a sluggish clip of 3.8% in December, official data released on Wednesday showed.

This was its slowest monthly growth in this financial year and marked a 14-month low, even as all major sectors barring crude oil saw some degree of production growth. In the same month a year earlier, core sector output grew at a revised rate of 8.3%.

Commerce ministry data showed that coal production grew in double digits in December. Steel, natural gas, refinery products, cement and fertilizers grew at a single digit.

Crude oil output declined 1%, while electricity grew 0.6%.

Growth in India's manufacturing activity fell to an 18-month low in December as output growth and new orders softened, a private survey released earlier this month said.

According to the HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, manufacturing PMI fell to 54.9 in December from 56 in November and 55.5 in October.