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India’s core sector growth moderated to 2.3% in February, marking its slowest pace in the last three months, according to official data released on Thursday. The decline reflects weaker performance across key infrastructure industries, raising concerns about the momentum of industrial activity in the country.
The core sector, which comprises eight major industries including coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity, accounts for about 40% of the Index of Industrial Production (IIP). A slowdown in these sectors often signals broader economic trends.
Data showed that sectors such as crude oil and natural gas recorded subdued or negative growth, weighing down overall performance. Meanwhile, coal and electricity sectors posted modest gains, but these were not sufficient to offset the slowdown in other segments.
On a positive note, industries like steel and cement continued to show resilience, supported by ongoing infrastructure projects and steady demand. However, the overall growth remained below expectations, indicating uneven recovery across sectors.
Economists suggest that global uncertainties, fluctuating commodity prices, and domestic demand variations may have contributed to the slower growth. The February data also comes amid concerns about sustaining economic momentum in the final quarter of the financial year.
The government is expected to closely monitor the situation, as core sector performance plays a crucial role in shaping industrial output and overall economic growth.
