India’s core sector growth stalls in October, lowest in 14 months - The HinduBusinessLine
India’s core infrastructure industries saw zero growth in October, marking their weakest performance in 14 months. The slump was driven by sharp declines in coal, electricity, crude oil, and natural gas production, even as sectors like steel, cement, fertilizers, and refinery products registered gains. Coal output dropped by about 8.5%, while electricity generation slid nearly 7.6%, underscoring severe stress in energy-intensive segments. On the flip side, steel grew modestly (6.7%) and cement rose (5.3%) year-on-year. For the April–October period, core sector growth averaged around 2.5%, significantly lower than the same stretch last year. Analysts attribute the slowdown partly to excess rainfall, which impacted both mining activity and power demand.
The Key points
- Index of Eight Core Industries (ICI) registered 0% growth in October — lowest in 14 months.
- Coal production plunged ~8.5%, making it one of the biggest drags on the index.
- Electricity generation fell ~7.6%, reversing recent growth momentum.
- Natural gas output declined ~5%, continuing its streak of weakness.
- Crude oil production dropped ~1.2%, adding pressure to energy segments.
- On the positive side, fertiliser output surged ~7.4%, helping cushion the core index.
- Steel output grew ~6.7%, but growth slowed compared to previous months.
- Cement production rose ~5.3%, driven by strong construction and infrastructure demand.
- The cumulative growth for April–October (FY26) stood at roughly 2.5%, down from 4.3% in the same period last year.
- Economists suggest excess rainfall in October disrupted mining operations and lowered power demand, contributing significantly to the slowdown.
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