In a significant economic development, the output of eight key infrastructure sectors experienced a remarkable surge of 12.1% in October 2023, marking a substantial increase compared to the 0.7% expansion in the same period the previous year. Official data released on Thursday highlighted a notable upswing in the production of essential sectors, including coal, steel, cement, and electricity.
These eight core sectors, namely coal, crude oil, natural gas, refinery products, fertilizer, steel, cement, and electricity, contribute significantly to the Index of Industrial Production (IIP), accounting for 40.27% of the total. The growth observed in October is attributed to a combination of factors, including a favorable low base effect and double-digit expansion in key sectors such as coal, steel, cement, and electricity.
September had already witnessed a commendable growth of 9.2% in these infrastructure sectors, and the momentum continued into October, showcasing the resilience of the Indian economy. The cumulative output growth for the eight sectors reached 8.6% in the April-October period of the fiscal year 2023-24, compared to 8.4% in the corresponding period of the previous year.
Specifically, coal output witnessed a substantial increase of 18.4%, while steel production surged by 11% during October 2023, compared to 3.8% and 5.8% growth in October 2022, respectively. Cement production recorded an impressive growth rate of 17.1%, bouncing back from a 4.2% contraction in the same period the previous year. Furthermore, electricity generation registered a remarkable uptick of 20.3% in October 2023, compared to a modest 1.2% growth in October 2022.
The positive trajectory extended to the extraction of crude oil and natural gas, with growth rates of 1.3% and 9.9%, respectively, in October 2023, as opposed to negative growth rates of 2.2% and 4.2% in October 2022. Refinery products production also rebounded, reaching 4.2% growth in October 2023, compared to a contraction of 3.1% in the same month the previous year. Fertilizer production, while slightly lower at 5.3%, remained robust and contributed to the overall growth, showcasing a consistent performance compared to the 5.4% growth in October 2022.
This positive momentum in key infrastructure sectors underscores the resilience and vibrancy of India’s industrial landscape. The encouraging growth rates in October contribute to the broader economic narrative, signaling a robust recovery and sustained expansion in crucial sectors driving the nation’s industrial output.