The growth rate of eight major basic industries of the country has slowed down to two percent in the month of September. The production of eight basic industries had increased by 9.5 percent in the same month a year ago. According to official data released on Wednesday, even though the growth rate of major basic industries may have declined on an annual basis in September, the performance of basic industries has improved compared to August. Let us also tell you how the figures have been presented by the government.
How much growth in which sector?
In August 2024, there was a decline of 1.6 percent in the production of basic industries on an annual basis. However, among the eight major sectors, crude oil, natural gas and power sectors recorded negative growth in the month of September. The production of cement and refinery products increased by 7.1 percent and 5.8 percent respectively in the month under review. The overall growth of major industries in the basic sector has been 4.2 percent in the first half of the current financial year, whereas it was 8.2 percent in the same period of the last financial year. The eight basic industries include coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and power sectors. The weightage of basic industries in the Index of Industrial Production (IIP) is 40.27 percent.
What do experts say?
Aditi Nair, chief economist of rating agency ICRA, said on these figures that the performance of the basic sector improved in September due to less disruption caused by rain on sectors like mining and power. During this period, the growth in cement production reached a six-month high. Nair said that ICRA has estimated three to five percent growth in the IIP figure in September 2024. Favorable base effect along with marginal decline in power and mining production and sharp growth in GST e-way bills will also support pre-festive season activities.
