The Ministry of Commerce and Industry announced that the Index of Eight Core Industries (ICI) saw a 6.3 per cent increase in May 2024 compared to the previous year. This index measures the production performance of eight core industries including Cement, Coal, Crude Oil, Electricity, Fertilizers, Natural Gas, Refinery Products, and Steel. These industries make up 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).
The production of Electricity, Coal, Steel, Natural Gas, and Refinery Products showed positive growth in May 2024. The final growth rate of the Index of Eight Core Industries for February 2024 stood at 7.1 per cent. The cumulative growth rate of core industries during April to May 2024-25 was 6.5 per cent compared to the same period last year.
Cement production, which has a weight of 5.37 per cent, declined by 0.8 per cent in May 2024 compared to the previous year. The coal production, with a weight of 10.33 per cent, increased by 10.2 per cent in May 2024. Crude oil production, with a weight of 8.98 per cent, declined by 1.1 per cent in May 2024. Electricity generation, with a weight of 19.85 per cent, saw a 12.8 per cent increase in May 2024. Fertilizer production, with a weight of 2.63 per cent, declined by 1.7 per cent. Natural Gas production, with a weight of 6.88 per cent, increased by 7.5 per cent. Petroleum Refinery production, which has a weight of 28.04 per cent, saw a 0.5 per cent increase. Lastly, Steel production, with a weight of 17.92 per cent, increased by 7.6 per cent in May 2024.
Overall, the positive growth rates in the production of core industries indicate a strong performance in the industrial sector in May 2024. With various industries showing growth in production, it points towards a healthy economic outlook and potential for further growth in the coming months. This growth is a positive sign for the Indian economy and reflects the resilience and strength of the core industries in contributing to the overall industrial production. The Ministry of Commerce and Industry will continue to monitor and assess the performance of these industries to ensure sustained growth and development in the sector.
