At 6.3%, Core Sector Growth in Aug Highest in Over 1 Year
The Economic Times [
Bengaluru
]
Jaipur
,
Delhi
Sep 23, 2025 | Page No.: 1 | Position: Top Center | Source: Bureau | Sq Cm: 284 | AVE: 234062 | PR Value: 1170310
Record : 1 / 1
View Text
Merge JPEG
JPEG
Tiff
Word Doc
PDF
1
2
All Text
<br>At 6.3%, Core Sector Growth in Aug. Highest in Over 1 Year ECONOMY: MACRO, MICRO & MORE 5 <br>Core Sector Output Hits 15-Month High in August GROWTH DRIVERS Coal, steel & cement drive growth; crude oil, gas drag Our Bureau II Growth rate Core Surge (y-o-y, in %) Core sector [Six out of eight 16 New Delhi: Indias core sector out- growth at 6.3% sectors recorded put grew at 6.3 % year on year in Au- in August a positive growth 12 gust, its fastest pace in 15 months, aided by a low base effect and Steel recorded the highest 8 strong performance by coal and increase in gi steel sectors, official data released output 4.Ar Monday showed. The eight infrastructure industri- es, which account for 40.27% -4 I weight in the Index of Industrial Jan 23 Aug 25 Production, had grown 3.7% in Ju- ly and had shrunk 1.5% in August, 2024. For the first five months of Aided by a low base, the year-on- Although the growth in cement FY26, average core sector growth year growth in core output expect- sector output stood relatively bet- stood at 2.8%, lower than 4.6% in edly improved in August, with the ter, it remained at a 10-month low in the corresponding period last year, uptick particularly driven by view of the monsoon fury in vari- data showed. coal, said Aditi Nayar, chief econ- ous parts of the country in Au- Industrial output had risen to a omist at ICRA. Coal output rose by gust, said Paras Jasrai, associate four-month high of 3.5% in July 11.4 % year-on-year in August after director at India Ratings and Re- and the latest core sector print is recording contractions in the pre- search (Ind-Ra). On the other hand, expected to provide a lift. HP data vious two months. Steel also posted crude oil and natural gas recorded will be released on September 29. robust growth of 14.2 %, the highest a contraction of 1.2% and 2.2 % , re- Rating agency ICRA projects IIP among eight industries. spectively. growth at 4.5-5.5 % for August, sup- Core sector growth for August is ported by a turnaround in the per- encouraging, driven mainly by OUTLOOK formance of mining output, which high growth in steel, followed by ce- Looking ahead, Sabnavis expects has seen a contraction in every ment, indicative of heightened ac- construction activity to pick up as month during April-July 2025. tivity in the infrastructure space, the monsoon retreats, providing a Bank of Baroda expects 4.5-5%, said Madan Sabnavis, chief econo- boost to cement demand, while while Ind-Ra estimates 5.5%. mist at Bank of Baroda. fertiliser output is likely to in- Coal, steel and cement sectors Cement sector recorded 6.1% crease as stocks are built up for ra- drove up the core sector output, growth, followed by fertilisers bi sowing. Ind-Ra expects core while crude oil and natural gas (4.6%), electricity (3.1%), and refin- sector output growth of around dragged it down. ery products (3%). 5% in September. <br>Core Sector Output Hits 15-Month High in August GROWTH DRIVERS Coal, steel & cement drive growth; crude oil, gas drag Our Bureau II Growth rate Core Surge (y-o-y, in %) Core sector [Six out of eight 16 New Delhi: Indias core sector out- growth at 6.3% sectors recorded put grew at 6.3 % year on year in Au- in August a positive growth 12 gust, its fastest pace in 15 months, aided by a low base effect and Steel recorded the highest 8 strong performance by coal and increase in gi steel sectors, official data released output 4.Ar Monday showed. The eight infrastructure industri- es, which account for 40.27% -4 I weight in the Index of Industrial Jan 23 Aug 25 Production, had grown 3.7% in Ju- ly and had shrunk 1.5% in August, 2024. For the first five months of Aided by a low base, the year-on- Although the growth in cement FY26, average core sector growth year growth in core output expect- sector output stood relatively bet- stood at 2.8%, lower than 4.6% in edly improved in August, with the ter, it remained at a 10-month low in the corresponding period last year, uptick particularly driven by view of the monsoon fury in vari- data showed. coal, said Aditi Nayar, chief econ- ous parts of the country in Au- Industrial output had risen to a omist at ICRA. Coal output rose by gust, said Paras Jasrai, associate four-month high of 3.5% in July 11.4 % year-on-year in August after director at India Ratings and Re- and the latest core sector print is recording contractions in the pre- search (Ind-Ra). On the other hand, expected to provide a lift. HP data vious two months. Steel also posted crude oil and natural gas recorded will be released on September 29. robust growth of 14.2 %, the highest a contraction of 1.2% and 2.2 % , re- Rating agency ICRA projects IIP among eight industries. spectively. growth at 4.5-5.5 % for August, sup- Core sector growth for August is ported by a turnaround in the per- encouraging, driven mainly by OUTLOOK formance of mining output, which high growth in steel, followed by ce- Looking ahead, Sabnavis expects has seen a contraction in every ment, indicative of heightened ac- construction activity to pick up as month during April-July 2025. tivity in the infrastructure space, the monsoon retreats, providing a Bank of Baroda expects 4.5-5%, said Madan Sabnavis, chief econo- boost to cement demand, while while Ind-Ra estimates 5.5%. mist at Bank of Baroda. fertiliser output is likely to in- Coal, steel and cement sectors Cement sector recorded 6.1% crease as stocks are built up for ra- drove up the core sector output, growth, followed by fertilisers bi sowing. Ind-Ra expects core while crude oil and natural gas (4.6%), electricity (3.1%), and refin- sector output growth of around dragged it down. ery products (3%). 5% in September.