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Core sector production shrinks for the first time since February 2021

Money ControlMoney Control · 2m
Core sector production shrinks for the first time since February 2021

petroleum refinery products, natural gas, crude oil, and electricity—contracted in August 2024 compared to the same month last year. The contraction in core sector growth is expected to impact overall industrial production, which may also face a slowdown. Inflation has remained high, with the consumer price index (CPI) rising by 5.30 percent in August 2024. This was driven by higher food and fuel prices. The Reserve Bank of India (RBI) has kept its key policy rates unchanged, maintaining a cautious stance to support economic recovery while keeping inflation in check. With the ongoing challenges in the core sector and the persistent inflationary pressures, the Indian economy faces uncertainties in the near term.

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