India’s core sector growth slows to 4% in December, cement, coal output declines

India’s eight core industries grew by 4% in December 2024, slightly lower than the 4.4% growth recorded in November, according to official data released on Friday, January 31. The slowdown was primarily driven by weaker cement and coal production, while steel and electricity output showed improvement.

Coal production rose 5.3% in December, down from 7.5% in the previous month. Crude oil output saw a marginal recovery, increasing 0.6% after contracting -2.1% in November. Natural gas production remained in negative territory at -1.8%, though slightly better than the -1.9% recorded earlier. Refinery products output stood at 2.8%, just below the 2.9% growth seen in November, while fertiliser production also slowed slightly to 1.7% from 2%.

Steel production saw an improvement, rising 5.1% compared to 4.4% in November. Electricity generation also gained momentum, growing 5.1%, up from 4.4%. However, cement production witnessed a sharp decline, expanding by only 4% in December compared to 13.5% in the previous month.

The core sector accounts for 40% of India’s industrial output. The moderation in December’s growth may have an impact on the Index of Industrial Production (IIP).

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