The eight core sector industries logged a 7.5% growth in October, after slowing down to 4.5% in the previous month, due to a pick-up in refining, coal and cement products along with a robust rise in gas output. In contrast, crude oil output dipped with fertiliser barely seeing any rise, and steel & electricity being the other laggards. The core sector industries had witnessed a 0.5% fall in October 2020.
The numbers, however, point to a slowdown in sectors such as auto, as steel production has slowed to 0.9%, while a 14.5% growth in the cement sector indicates strong demand from construction. In recent months, the government is seeking to speed up capital spending to boost demand for these goods.
But economists warned of a slowdown in the coming months. “With a mixed trend displayed by most early indicators that are available for November 2021, we expect the core sector growth to slip to under 5% for this month,” said ICRA chief economist Aditi Nayar.
