India’s core sector growth slows to 2% in July as coal, crude output contract
New Delhi: India’s core sector growth eased to 2 percent in July, down from 2.2 percent in June, according to official data released on August 20, as heavy monsoon activity weighed on energy sector output.
The eight core industries, which account for 40 percent of the Index of Industrial Production (IIP), remained sluggish, with four sectors registering contractions.
Coal production slumped 12.3 percent, the steepest fall in five years, while crude oil output declined for the seventh straight month, slipping 1.4 percent.
Natural gas production fell 3.2 percent, and petroleum refining contracted after two months of expansion.
In contrast, infrastructure-linked sectors offered some support. Steel output recorded its fastest pace in 21 months, surging 12.8 percent, while cement production rose 11.7 percent, the strongest in four months.
Electricity generation edged up 0.5 percent, a three-month high that pulled the sector back into positive territory.
The data highlight a divergence in India’s industrial landscape, with robust growth in construction-related sectors offsetting weakness in energy production.
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