Introduction
So, India's core sector, which is like the backbone of the country's industrial stuff, only grew by 4% in June 2024. That's the chilliest it's been in 20 months, which is kind of a big deal. This blog post is gonna break down why this happened and what it could mean for India's economy in the future.
Talking 'Bout Core Sector Growth
India's core sector, which is basically like the VIP section of industrial production (about 40% of the whole thing), didn't do so hot in June 2024. It only went up by 4%, which is way less than the 6.4% in May 2024 and the 8.4% from the same time the year before. We're gonna look into this and see why it's happening.
How Each Industry Did
- Coal: Coal mining was like the MVP of the group, growing by 14.8% in June. That's more than double the 10.2% it did in May.
- Fertilizers: These guys had a rough time before but bounced back with a 2.4% growth, which is better than the sad 1.7% drop in May.
- Cement: Cement was okay, but not great, with a 1.9% increase after a tiny 0.6% decrease in May.
- Electricity: It went up by 7.7%, but it was doing way better in May with a 13.7% growth.
- Steel: Steel's growth was also cooler, at 2.7% compared to 6.8% in May.
- Natural Gas: Natural gas did a little better, growing by 3.3%, but still less than May's 7.5%.
- Crude Oil and Refinery Products: These guys didn't do so well, with crude oil down by 2.6% and refinery products down by 1.5%.
Why the Slowdown?
So, why did this happen? Maybe it's because the government was spending less money on big projects before the April-June 2024 elections. Plus, construction was kinda taking a nap.
How This Affects the Money Situation
1. What the Government Spent and Built
We're gonna talk about how the government not spending as much on stuff and construction not happening as much might have led to this slow growth.
2. Each Industry's Story
We'll look at why some industries, like coal and electricity, were still growing pretty good even though others weren't. Maybe it's because people needed more power and it was hot outside.
Looking Ahead
1. Stuff Being Made
India's manufacturing looked a bit better in June 2024, with more stuff being made and more people getting jobs, according to some fancy report from HSBC.
2. What the Smart People Think
We'll talk about what experts are saying about the future. They're predicting what might happen because of money the government gives to states and some big budget plans for FY25.
The End
We're gonna wrap this up by summarizing what we talked about - the slow growth in core sectors, what it could mean for the economy, and what we might see in the next few months.
- India's Big Industries in June 2024
- Growth Being Slower
- Each Industry's Performance
- Government Spending and Stuff
- What's Happening with the Economy
- What Experts Predict
- Manufacturing in India
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