Core Sector Growth: The growth rate of eight major infrastructure sectors of the country declined to only 1.8 percent in November, which was 5.8 percent a year ago in November 2024, and this decline clearly reflects the slowdown in the country’s industrial activities. According to official data, the main reason for this weak performance was the decline recorded in crude oil, natural gas, petroleum refinery products and electricity production, which overshadowed the overall growth of these basic sectors.

However, it is a matter of relief that there has been some improvement in the situation on a monthly basis, because in October the combined production of these eight major industries – coal, crude oil, natural gas, petroleum refinery products, electricity, fertilizer and steel had fallen below zero to -0.1 percent.

In comparison, November’s figure of 1.8 percent indicates that the pace of decline has slowed down, but a strong recovery is still far away. Talking about the entire current financial year 2025-26, the production of these eight sectors has increased by only 2.4 percent in the period from April to November, whereas in the same period of the last financial year 2024-25, this growth was 4.4 percent.

This makes it clear that the infrastructure sector, which is considered the backbone of the country’s industrial and economic growth, is currently under pressure and the weakness in raw materials and power production related to the energy sector can also impact the overall economic activity.

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Core sector growth: The growth of India’s core sector has come to the 8 -month lower level in April. This has caused a big shock to the country’s economy. The data released by the Ministry of Commerce and Industry on Tuesday suggests that eight core sectors – coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and power growth have been reduced to 0.5 percent in April. Whereas in March, the same figure was 4.6 percent and 6.9 percent in April last year.

April growth is much less than March

The growth of cement sector in April has been 6.7 percent, which is much lower than the growth of 12.2 percent in March. In the same month, the growth of the steel sector has increased to only 3 percent, while in March, the growth of 9.3 percent was revealed. Similarly, there has been a growth of only 0.4 percent against the growth of 12.7 percent in March in the sector of natural gas in April. However, the coal sector has increased by 3.5 percent in April, which exceeds the growth of 1.6 percent in March.

Core sector important for country economy

The core sector contributes about 41 percent to the Industrial Production Index (IIP). Experts believe that the dull results in April will affect the overall IIP, which will be released by the end of this month. Explain that the core sector includes coal, crude oil, natural gas, refinery products, electricity, cement, steel and fertilizer. This eight sector is similar to the backbone of the country’s economy. In this, the effect of growth or decline is deep on the entire economy.

Why did this decline?

Official data shows that in the month of April, there has been a decline in crude oil, refinery product segment, fertilizer. These three sectors have declined by 2.8 percent, 4.5 percent and 4.2 percent respectively. Whereas the power sector has registered a growth of only 1 percent, which is much less than the growth of 7.5 percent in March.

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