India's core sector output accelerates to 5.4% in July

India's core sector growth rebounded to 5.4 per cent in July, up from 3.2 per cent recorded in the same month last year, according to official data released Thursday. The expansion was propelled by increased production across coal mining, petroleum refining, cement manufacturing, electricity generation and iron ore extraction.

The performance represents a notable uptick from June's 6 per cent growth rate, though the year-on-year comparison reflects changing baseline calculations. Since June, the government has shifted to a new base year of 2022-23 for measuring core sector output, replacing the previous 2011-12 baseline. The index now encompasses nine sectors, with iron ore newly added to the measurement framework.

Not all segments shared in the expansion. Production of crude oil, natural gas and fertilisers contracted during July, offsetting gains elsewhere across the infrastructure complex. Over the April-July period of the current fiscal year, core sectors expanded by 4.3 per cent compared to 1.5 per cent in the corresponding four-month stretch of the previous financial year, indicating a broader acceleration in industrial momentum.