Accelerated Growth of the Core Sector | 02 Dec 2023

India’s core sectors grew 12.1% in October from a revised uptick of 9.2% in September.
All eight sectors clocking positive growth for only the third time in 18 months, and five of them recording a double-digit surge.
The core sectors constitute little over 40% of the Index of Industrial Production (IIP).
- The Index of Industrial Production (IIP) is an index that shows the growth rates in different industry groups of the economy in a fixed period of time.
A rise in power generation signals strong economic activity supported by the coal sector. The Industrial Production (IIP) growth for October is anticipated to be between 6% and 8%, depending on consumer goods performance.
Fertilizer production has risen in anticipation of Rabi crop sowing this month, while the cement industry has experienced growth due to both a negative base effect and an upturn in the housing sector.
- Base effect is the effect that choosing a different reference point for a comparison between two data points can have on the result of the comparison.