The core sector growth moderated to 3.1 per cent year-on-year in October 2024, down from 12.7 per cent a year ago, according to official data released Friday.

While this marked a sequential improvement from September’s 2.4 per cent growth, the slowdown was primarily driven by weaker performances in coal, steel and cement.

Production growth of coal, fertiliser, steel, cement and electricity moderated to 7.8 per cent, 0.4 per cent, 4.2 per cent, 3.3 per cent and 0.6 per cent respectively, against 18.4 per cent, 5.3 per cent, 13.6 per cent, 16.9 per cent and 20.4 per cent in October last year.

However, refinery products output rose to 5.2 per cent in the month under review. The growth of core sectors was 4.1 per cent during April-October this fiscal. It was 8.8 per cent in the same period last fiscal.

The eight core sectors contribute 40.27 per cent to the Index of Industrial Production (IIP) which measures overall industrial growth.

Rahul Agrawal, senior economist, Icra, said: “The year-on-year growth in the core sector inched up to 3.1 per cent in October 2024 from 2.4 per cent in the previous month, despite an adverse base. The performance of the constituent industries was mixed, with four reporting an improvement in their growth, and an equal number witnessing a slowdown.”

“While the growth in electricity generation improved marginally, it remained quite weak at sub-1 per cent, continuing to weigh upon the growth.”

The construction-related indicators reported mixed trends, with the growth in steel production improving, while that in cement output deteriorating between these months, although both remained muted,” he added.

Fiscal deficit

The Centre’s fiscal deficit at the end of the first seven months of the financial year 2024-25 touched 46.5 per cent of the full-year target, government data showed on Friday.

In absolute terms, the fiscal deficit — the gap between the government’s expenditure and revenue — was at ₹7,50,824 crore during April-October period, according to data released by the CGA.