Correct Answer :   8.2%

India's eight core sectors posted a growth of 8.2% in June 2023, according to data released by the Ministry of Commerce and Industry on July 31, 2023.

At 8.2%, the growth in India's eight key infrastructure sectors - coal, crude oil, steel, cement, electricity, fertilisers, refinery products, and natural gas - in June is the highest in five months.

Core sector growth for May has been revised up to 5.0% from 4.3%. In June 2022, core sector growth was 13.1%, thanks to a favourable base effect.

For April-June, core sector growth has been 5.8%, down from 13.9% in the first three months of 2022-23.

The sharp improvement in performance last month was down to improved output growth in six of the eight sectors, with only fertiliser and cement output growing at a slower pace in June compared to May on a year-on-year basis. However, cement production still grew at an impressive 9.4%, while fertiliser output was up 3.4%, down from 9.7% growth in May.

Of the other six sectors which saw improved performance in June, crude oil output contracted again - this time by 0.6%, compared to a fall of 1.9% in May.

"The tardy onset of the monsoon contributed to an improved performance of electricity, coal etc," noted Aditi Nayar, chief economist at ICRA.

Electricity production was up 3.3% in June compared to a growth of 0.8% in May, while coal output increased by 9.8%. The sector to post the highest growth was steel, whose output jumped by 21.9% - double the May growth rate of 10.9%.

With the eight core industries making up more than 40% of the weight of the Index of Industrial Production, Nayar expects industrial growth in June to be in the range of 4-6% "in spite of the moderation in the year-on-year performance of several available high-frequency indicators".

India's industrial output had grown by 5.2% in May, as per data released on July 12. Data for June will be released on August 11..

Source : Money Control