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Core sector grew by 1.3% in Dec 2019

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The core sector growth for December 2019 improved and grew by 1.3 per cent as against the 0.6 per cent contraction seen a month ago. However, it was lower than 2.1 per cent growth witnessed in December 2018.

During the first nine months of the fiscal year 2019-20, the fiscal deficit of the central government has surpassed its budgeted estimate. During April-December 2020, the actual fiscal deficit was at 132.4 per cent of the budget target. The fiscal deficit during this period was Rs 9.4 lakh crore, higher than higher than the budgeted Rs 7.04 lakh crore for FY20. Lower tax collections and lower disinvestment proceeds coupled with significant growth seen in both revenue and capital expenditure has led to higher fiscal deficit.

  • The revenue receipts collection was lower at only 58.4 per cent of the budget estimate lower than 62.8 per cent seen in the corresponding period last year.
  • Tax collections were low at 54.9 per cent of the budgeted estimate for FY20. The decline has been on account of lower corporate tax collection, integrated GST, customs and service tax.
  • Non-tax revenue was higher at 77.3 per cent of the budget estimate compared with 60.3 per cent in the corresponding period last year. These are aided by higher receipts by way of dividends and profits (99 per cent of the budgeted).
  • Capital receipts are only 25.9 per cent of the budget estimate much lower than the 50.5 per cent in the comparable period last year.
  • Only 17 per cent of the disinvestment budgeted target has been achieved during the first nine months of FY20, lower than the 43 per cent last year. Disinvestment proceeds amounted to Rs 18,100 crore out of Rs 1.05 lakh crore budget target.
  • Revenue expenditure is on par with last year at 75.7 per cent of the budget target.
  • Capital expenditure is higher at 75.6 per cent of budget compared with 70.6 per cent in the comparable period last year indicative of focus of the government on asset creation.

    • We are expecting around 0.5 per cent slippage in the fiscal deficit, which is expected to move to 3.8 per cent of GDP for FY20.

    Core Sector update -December 2019
    The core sector growth for December 2019 improved and grew by 1.3 per cent as against the 0.6 per cent contraction seen a month ago. However, it was lower than 2.1 per cent growth witnessed in December 2018. The growth has been aided by improvement in the production in 3 industries namely refinery products, coal and fertilizers. In terms of cumulative growth in the eight core industries during April-December 2019, the growth was 0.2 per cent compared with the 4.8 per cent growth registered during April-December 2018.

    Industry-wise growth:

  • Coal production increased by 6.1 per cent in December 2019 over December 2018 with after sustained contraction seen in the previous five months.
  • Crude Oil production declined by 7.4 per cent in the month compared with the contraction by 4.3 per cent in the comparable month a year ago.
  • The production of the natural gas too has contracted by 9.2 per cent as against 4.2 per cent growth seen in December 2018 registering sustained contraction for the nine months.
  • Refinery products, which have highest weight in core sector, grew by 3 per cent as against a contraction by -4.8 per cent in December 2018.
  • Fertilizers have seen a double digit growth by 10.2 per cent in December 2019 as against -2.3 per cent de-growth seen in December 2018.
  • Steel production increased by 1.9 per cent in December 2019, after registering sustained contraction in the past 3 months. It is also lower than the 10.1 per cent growth seen in December 2018.
  • The production of cement grew by 5.5 per cent higher than previous month (4.3 per cent in November 2019) but it was much lower than the 11.6 per cent growth seen in December 2018.
  • Electricity production contracted for the successive fifth month in December 2019 by 1.9 per cent as against the 4.4 per cent growth seen in the corresponding month a year ago.

    • CARE Ratings- view
    Based on the core sector growth, IIP is expected to grow by 2 per cent for December 2019 which would also be aided by the base effect. We are expecting IIP to grow by 4 per cent for FY20.

    COURTESY: CARE RATINGS- Fiscal and Core Sector Update
    Disclaimer: This report is prepared by CARE Ratings Ltd. CARE Ratings has taken utmost care to ensure accuracy and objectivity while developing this report based on information available in public domain. However, neither the accuracy nor completeness of information contained in this report is guaranteed. CARE Ratings is not responsible for any errors or omissions in analysis/inferences/views or for results obtained from the use of information contained in this report and especially states that CARE Ratings has no financial liability whatsoever to the user of this report.

    ABOUT THE AUTHORS:

  • Madan Sabnavis is Chief Economist. He can be contacted on: madan.sabnavis@careratings.com or 91-22-68374433
  • Dr Rucha Ranadive is Economist. She can be contacted on: rucha.ranadive@careratings.com or 91-22-68374406

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    Economy & Market

    Showcasing India’s Supply Chain Revolution

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    3 weeks ago

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    March 25, 2025

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    The MultiLogistix Expo 2025, India’s first dedicated logistics and supply chain expo, will highlight innovations transforming India’s logistics sector under PM Gati Shakti.
    The First Construction Council, in association with Construction World and Infrastructure Today magazines, is set to present MultiLogistix Expo 2025, India’s first expo dedicated to the logistics and supply chain industry. Scheduled for 12th – 13th November 2025 at Yashobhoomi, Delhi, this groundbreaking event is supported by The Chartered Institute of Logistics and Transport and aims to showcase India’s supply chain advancements under PM Gati Shakti.
    The event will provide a unique platform for industry leaders, policymakers, and professionals to discuss and explore innovations in logistics infrastructure, technology, and operational efficiencies. Attendees can expect networking opportunities, panel discussions, and exhibits highlighting the latest trends in multi-modal transportation, freight corridors, warehousing solutions, and automation.

    India’s Logistics Transformation

    India’s rapid economic growth is underpinned by its logistics sector, with government capital expenditure tripling since FY20, significantly benefiting the nation’s road and railway networks. As per the Economic Survey 2023-24, India has risen from 54th (2014) to 38th (2023) in the World Bank’s Logistics Performance Index.
    Key government initiatives such as PM Gati Shakti, the National Logistics Policy (NLP), and the Sagarmala program aim to reduce logistics costs from 8.35 per cent to 5 per cent of GDP. Investments in Multi-Modal Logistics Parks (MMLPs), dedicated freight corridors, and port modernisation are expected to accelerate economic growth and strengthen India’s global supply chain capabilities.
     
    Sanjiv Garg, IRTS CMILT, Former Additional Member, Railway Board & Former MD, Pipavav Railway Corporation Limited, remarked: “For India to become a five trillion-dollar economy, the role of logistics in achievement of this major milestone cannot be under-estimated. Hence, reduction in logistics costs will work to further speed up and consolidate the achievement of the goal of Viksit Bharat by 2047.”
    Logistics contributes 30 per cent of total production costs, with road transport dominating at 70 to 80 per cent. Per-tonne logistics costs range between Rs 1,500-1,800, significantly impacting profitability. Also, the development of dedicated freight corridors and rail connectivity is set to enhance logistics efficiency in the sector.

    Emerging Trends in Logistics

    With India’s logistics sector evolving rapidly, key advancements include:
    – Multi-modal logistics hubs: The Bharatmala Pariyojana Phase 1 plans 35 MMLPs with a total investment of Rs 500 billion.
    – Technology and automation: AI-driven supply chain management, IoT-enabled tracking, and robotics are enhancing operational efficiencies.
    – E-commerce growth: Rising digital adoption is driving demand for express delivery solutions and automated warehouses.
    The MultiLogistix Expo 2025 is the definitive event for businesses looking to explore India’s logistics ecosystem, discover investment opportunities, and engage with global supply chain experts. For space bookings and sponsorship opportunities, contact:
    – Rajat (North): +91 86910 05256 | Rajat.G@ASAPPinfoGlobal.com
    – Chandrashekhar (West): +91 86524 93000 | Chandrashekhar.B@ASAPPinfoGlobal.com
    For delegate registrations and inquiries:
    – Siraj: +91 97695 77206 | Siraj.K@ASAPPinfoGlobal.com
    Visit www.MultiLogistix.com for further details.
    Key Highlights of MultiLogistix Expo 2025

    • Exhibitor segments: Logistics services, material handling equipment, and logistics technology providers.
    • Visitor profile: Supply chain professionals, manufacturers, 3PL/4PL operators, shipping and warehouse operators, and government officials.
    • Networking and thought leadership: Exclusive panel discussions and keynote sessions with industry pioneers.

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    Economy & Market

    Highlighting the Future of Smart, Sustainable Infra

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    3 weeks ago

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    March 25, 2025

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    Roads form the backbone of any modern economy, facilitating trade, connectivity, and socio-economic growth. Across the world, road networks continue to expand, adapting to the challenges of sustainability, urbanisation, and technological evolution. India, the world’s second-largest road network with 6.3 million km of highways, state roads, and local roads, has become a focal point for infrastructure transformation. With increasing investments in expressways, tunnels, and smart roads, the sector is poised for a technological revolution that balances innovation with sustainability.

    With Bharatmala Pariyojana, India’s government has set an ambitious goal of constructing 50,000 km of expressways and access-controlled highways by 2047. The nation’s budget for road infrastructure has surged to Rs 2.6 trillion in 2023, with further increases expected in 2024. However, as roads continue to serve as a key economic driver, the industry must adapt to increasing demands for sustainable materials, automation, and intelligent transport solutions—precisely what RAHSTA Expo 2025 aims to address.

    The 15th RAHSTA Expo—Asia’s premier roads and highways exhibition—will be held on September 3rd and 4th, 2025, at the Jio World Convention Centre. As part of the 11th India Construction Festival, this grand event is presented by First Construction Council and backed by key industry associations such as the National Highways Builders Federation, International Road Federation – India Chapter, and CSIR -Central Road Research Institute. With an expected 10,000+ visitors, 200+ exhibitors, and 50+ speakers, RAHSTA Expo 2025 will bring together industry leaders, policymakers, engineers, and innovators to discuss, exhibit, and implement new technologies in the global road construction industry.

    RAHSTA, an acronym for Roads and Highways, encapsulates the expo’s mission: to revolutionise the road construction industry with cutting-edge technologies, materials, and safety standards. The event stands as a vital international platform where stakeholders can explore solutions for high-quality, cost-effective, and sustainable road construction. With exhibitors and attendees spanning continents, this expo fosters cross-border collaborations that shape the future of mobility.

    One of the focuses of the expo is road safety, a global challenge that sees over 1.3 million deaths annually due to poorly designed and maintained roads. The event will introduce automation in construction, a transformative force that enhances efficiency in this traditionally labour-intensive industry. Attendees will witness demonstrations of AI-powered predictive maintenance, automated asphalt laying, and drone-based road inspections.

    Future-proofing road construction

    With growing concerns over carbon emissions, resource depletion, and climate resilience, RAHSTA Expo 2025 is putting sustainability at the forefront. Roads must not only support increasing traffic loads but also be built with environmentally friendly materials.

    New innovations to be showcased at the expo include self-healing roads, plastic roads, permeable pavements, solar roads, and nano-technology-enhanced materials. These advancements will help the industry align with global sustainability goals, ensuring that infrastructure growth does not come at the cost of environmental degradation.

    With the rise of smart infrastructure, the integration of Internet of Things (IoT) and Artificial Intelligence (AI) is transforming roads into intelligent transport networks. RAHSTA Expo 2025 will feature groundbreaking developments such as: smart roads with real-time traffic monitoring, predictive maintenance using Digital Twin Technology, autonomous construction machinery, and drones for surveying and quality control.

    This fusion of digital technology with civil engineering is paving the way for more resilient, efficient, and adaptive road networks globally.

    The India Construction Festival

    RAHSTA Expo 2025 will be a flagship event under the 11th India Construction Festival, a multi-event platform that celebrates advancements in infrastructure. Alongside RAHSTA Expo, the festival will feature:

    • 15th India RAHSTA Conference – Engaging discussions on policy, investment, and future technologies.
    • 13th Equipment India Awards – Recognising excellence in construction equipment innovation.
    • 23rd Construction World Global Awards (CWGA) – Honouring the industry’s most impactful projects and leaders.
    • 20th Construction World Architect & Builder (CWAB) Awards – Honour the visionaries shaping the country’s skyline – Top Architects, Top Builders, and Noteworthy Projects.

    Attendees at RAHSTA Expo will have access to these prestigious industry events, making it the most comprehensive construction and infrastructure gathering in Asia.

    Be a Part of RAHSTA Expo 2025

    The 15th RAHSTA Expo 2025 presents a golden opportunity for stakeholders, investors, and innovators from across the globe to converge in Mumbai and explore cutting-edge advancements in road construction. As the world moves towards more intelligent, sustainable, and resilient infrastructure, this expo will serve as the ultimate platform to drive change and innovation in the sector.

    To book your exhibition space, explore sponsorship opportunities, or register as a delegate, visit:

    • www.RAHSTAexpo.com
    • www.IndiaConstructionFestival.com

    For booking exhibition space and sponsorships, contact:

    • Sujoy Gomes: +91 86577 95881 | Email: Sujoy.G@ASAPPinfoGlobal.com

    For delegate registrations, contact:

    • Siraj: +91 97695 77206 | Email: Siraj.K@ASAPPinfoGlobal.com

    RAHSTA Expo 2025 is not just about roads—it’s about the future of mobility, sustainability, and innovation. Be there to witness the transformation of the global infrastructure industry!

    Road Development Projects in Maharashtra

    Maharashtra is leading the way with ambitious infrastructure projects, including several key expressways, metro systems, and coastal road developments. These projects, estimated to cost billions, are part of the state’s road development plan under the Maharashtra Samruddhi Road Development Corporation (MSRDC), Maharashtra State Industrial Development Corporation (MSIDC), and the Brihanmumbai Municipal Corporation (BMC).

    The total value of these projects is significant, with the $33.14 billion allocated in the Union Budget 2025-26 for infrastructure development across India. Here are some of the key road projects in Maharashtra:

    These projects represent a significant opportunity for infrastructure development, particularly in the road construction sector, which will see substantial demand for advanced construction machinery and technology.

    The construction equipment industry in India is witnessing rapid growth, driven by extensive infrastructure projects across the country, particularly in the road and highway sector. The market is booming, with an expected CAGR of 12.6 per cent from 2023 to 2030. As of now, the market value of the construction equipment industry in India is approximately $7.5 billion, and it is projected to reach $18.7 billion by 2030.

    This rapid growth is primarily driven by increasing infrastructure investments, including large-scale road and highway projects, which require advanced machinery, automation, and AI-powered equipment to meet the scale and complexity of these developments.

    The demand for construction equipment in India presents a golden opportunity for international companies looking to enter the Indian market and capitalise on the infrastructure boom. With the industry expected to continue its growth trajectory through 2030, it offers immense potential for both existing players and new entrants in the construction machinery space.

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    Concrete

    Driving Sustainability Through Innovation

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    3 weeks ago

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    March 25, 2025

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    The 15th Cement Expo 2025 will spotlight India’s cement industry’s growth, innovation, and sustainability, showcasing cutting-edge solutions for a greener future.

    The cement industry in India, the second-largest in the world, is on the cusp of remarkable growth as it continues its transition toward sustainability, innovation, and expansion. The 15th Cement Expo 2025, scheduled for November 12-13, 2025, at the Yashobhoomi Convention Centre in Delhi, will be the premier event where the industry’s foremost stakeholders converge to explore state-of-the-art technologies and solutions.
    Co-located with the 11th Indian Cement Review Conference and the 9th Indian Cement Review Awards, the expo promises to be a pivotal event for professionals in the cement, construction, and infrastructure sectors. This year’s theme, “Driving Sustainability Through Technology,” highlights the sector’s commitment to decarbonisation, efficiency, and technological advancement. With India poised to add 80 to 100 million tonnes of cement capacity by 2024-25, the event will address the urgent need for sustainable, low-carbon solutions to meet the growing demand.
    Before we look ahead to the 15th Cement Expo, let’s reflect on the remarkable success of the Cement Expo Forum 2025, held on March 5-6, 2025, in Hyderabad. The event attracted over 500 industry professionals and featured groundbreaking discussions on sustainability, logistics, and decarbonisation. Key sponsors and partners, such as ABB, Gebr Pfeiffer, JK Cement, and Flender Drives, showcased their latest innovations, contributing to the forum’s success.
    Pratap Padode, Founder and President of First Construction Council, spoke at the event, noting, “The PPP pipeline is complemented by a provision of Rs 1.5 trillion in interest-free loans to states, earmarked for capital expenditure. With this, we have a solid plan in place. What needs to be done is to ensure that the PPP actually takes off as envisaged. To make this happen, trust must be established, and policies must be investor-friendly. Telangana, in this regard, has demonstrated ease of doing business exceptionally well.”
    He added, “These financial injections into the infrastructure sector are expected to create a ripple effect, driving demand for cement as a key material in construction and development projects. The growing demand for cement is evident as infrastructure projects continue to rise across the country.”
    The forum also provided invaluable networking opportunities, with attendees gaining insights from over 35 distinguished speakers and connecting with more than 50 exhibitors. The event laid a strong foundation for the upcoming Expo, showcasing the significant strides the cement industry is making toward a greener, more efficient future.
    The 15th Cement Expo 2025 will focus on advancing the industry’s next big step toward sustainable growth. With India’s cement sector making significant progress in decarbonisation, a key focus will be on technologies and innovations that support carbon capture, low-carbon cement production, and energy-efficient solutions.
    The expo will feature over 50 exhibitors representing all aspects of the cement industry. Whether you are a manufacturer, raw material supplier, technology provider, or logistics partner, the Cement Expo 2025 offers an ideal platform to showcase your products and solutions. Attendees will have the opportunity to explore the latest advancements in cement production technology, automation, logistics, and environmental solutions, all geared toward building a greener and more sustainable future.
    Exhibitor profiles will include cement manufacturers, raw material suppliers, technology and automation solutions providers, environmental and sustainability solutions providers, cement packaging and logistics, construction equipment manufacturers, admixtures and chemical suppliers, and concrete reinforcement and structural systems.

    11th Indian Cement Review Conference

    Held alongside the Expo, the 11th Indian Cement Review Conference will offer delegates invaluable insights into the latest trends and innovations shaping the cement industry. Focusing on sustainability, the conference will address critical issues such as energy efficiency, plant design, and emerging technologies like carbon capture and automation.
    Industry leaders will share their expertise in technical forums, while specialised activities, such as plant tours and energy audits, will provide practical guidance on improving operations and efficiency. This is a prime opportunity to network with industry stakeholders, gain hands-on experience with new technologies, and acquire actionable knowledge to enhance your business.

    9th Indian Cement Review Awards

    The 9th Indian Cement Review Awards will recognise the fastest-growing cement companies and industry leaders for their outstanding contributions to the sector. This prestigious event will serve as a platform to honour the pioneers of innovation, sustainability, and performance within the cement industry, highlighting the sector’s commitment to growth and environmental responsibility.
    As we look forward to the 15th Cement Expo 2025, we invite you to join us for two exciting days of networking, learning, and innovation. This event offers a unique opportunity to be part of the next wave of growth and sustainability in the global cement sector.

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