India’s core sector output up 3.1% in October | Services exports rise 22.3% in October | Indian economy | Markets News
In a big boost to the Indian economy, India’s 8 major industries’ output rose to 3.1 per cent in October 2024 from 2.4 per cent in September, while services exports expanded 22.3 per cent to $34.3 billion in October from $17.21 billion in the year ago period.
India core sector, services export update. (Photo credit: Reuters/ Getty Images)
New Delhi: Even though the country’s GDP reached a two-year low in the second quarter, the country’s economy has received good news from the core and service sectors. While the core sector has been seen in a better condition compared to September, on the other hand, service exports have seen a rise for the second consecutive month. Let us also tell you what kind of figures have been seen in both the sectors.
Boom in core sector
The production of eight major basic industries declined to 3.1 per cent in October 2024. It was 12.7 percent in the same month last year. While the growth rate of October 2024 is however higher than the 2.4 percent recorded in the previous month of September 2024. There has been a decrease in the production of crude oil and natural gas in October. The growth in the production of coal, fertilizer, steel, cement and electricity was 7.8 per cent, 0.4 per cent, 4.2 per cent and 0.6 per cent respectively. In October last year, this figure was 18.4 per cent, 5.3 per cent, 16.9 per cent and 20.4 per cent respectively.
Production of refinery products increased to 5.2 per cent in the month under review. During April-October in the current financial year, the growth rate of major infrastructure sectors – coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity – was 4.1 per cent. It was 8.8 per cent in the same period of the previous financial year. These eight major infrastructure sectors contribute 40.27 per cent to the Index of Industrial Production (IIP).
Increase in service exports
On the other hand, the country’s service exports have seen an increase for the second consecutive month. According to the data released by the Reserve Bank of India (RBI) on Friday, it increased by 22.3 percent to $34.3 billion in October. On the other hand, imports increased by 27.9 percent to $17.21 billion in October. After a decline in August compared to July, service exports increased to $32.57 billion in September. Imports also increased for the second consecutive month.
Decrease in GDP
Due to poor performance of the manufacturing and mining sectors as well as weak consumption, the country’s economic growth rate fell to an almost two-year low of 5.4 per cent in the July-September quarter of the current financial year. However, India remains the fastest growing major economy in the world. In the same period a year ago, the country’s gross domestic product (GDP) grew by 8.1 per cent. At the same time, it was 6.7 per cent in the April-June, 2024 quarter. GDP indicates the total value of goods and services produced within the country’s borders in a given period. According to the data, the country’s economy slowed down to 5.4 percent in the July-September quarter of FY 2024-25. The previous low of GDP growth was 4.3 per cent in the October-December quarter of FY 2022-23.
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