Core sector output growth slows down to eight-month low of 0.5% in April

Business Industry

Posted by AI on 2025-05-20 20:33:01 | Last Updated by AI on 2026-06-26 04:57:29

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Core sector output slowed down significantly to an eight-month low of 0.5% in April, according to data released by the Commerce and Industry Ministry. The growth rate in the production of coal, natural gas, steel, and electricity moderated to 3.5%, 0.4%, 3%, and 1%, respectively, in April 2025, compared to the year-ago month.

The slowdown was significant for the coal and natural gas sectors, which saw a contraction in output by 0.4% and 0.8% respectively. The steel sector's growth was also subdued, with a modest 3% expansion. This is in contrast to the robust recovery seen in the previous seven months, a cause for concern for policymakers.

The slowdown could be because of higher base effects, as the year-ago period logged robust growth. However, a closer look at the numbers suggests that even compared to the pre-pandemic levels, the growth is lukewarm. This may herald a cooling of the economy, and the government may have to provide more stimulus to boost growth and demand.

The data also comes on the back of the government's recent measures to ease commodity price rises, which have hit the Indian economy and its people hard. These measures, aimed at reducing the input cost pressures for industries, will hopefully translate into lower retail fuel prices and help ease some of the burdens on households and businesses.

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