India’s Core Sector Rebounds in September as Cement and Electricity Lead the Charge

Growth in India’s core sector rebounded in September with significant contributions from cement and electricity. The sector grew by 2%, recovering from August’s 1.6% contraction. Cement production hit a six-month high. Data also indicated a narrowed fiscal deficit supported by robust tax revenues and RBI’s dividend payment.

In a notable turnaround, India’s core sector experienced a resurgence in September, marked by a 2% growth, following a 1.6% contraction in August. This uptrend was primarily fueled by significant contributions from the cement and electricity sectors, showcasing resilience and recovery in the economy.

Cement production soared to a six-month high, reflecting increased construction activity and industrial demand. Concurrently, the electricity sector’s robust performance underscored consistent energy demand across the country.

The positive trajectory in the core sector coincides with favorable fiscal indicators. The fiscal deficit, a crucial benchmark of economic health, narrowed significantly. This improvement was supported by strong tax revenue collections and a substantial dividend payment from the Reserve Bank of India (RBI).

These developments highlight the government’s fiscal prudence and the effectiveness of economic policies, painting an optimistic outlook for India’s economic recovery in the coming months.