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Tuesday, January 26, 2021

Core industries’ output shrinks for 8th straight month in October

The production of eight core sectors had contracted 5.5 per cent in October 2019, data released by the Commerce and Industry Ministry showed on Friday.

By: ENS Economic Bureau | New Delhi | November 28, 2020 1:01:10 am
A worker labors at the welding line on the Innova Crysta compact multi-purpose vehicle (MPV) production line at the Toyota Kirloskar Motor Ltd. plant in Bidadi, Karnataka, India, on Wednesday, Sept. 9, 2020. (Photographer: Dhiraj Singh/Bloomberg)

Contracting for the eighth consecutive month, the output of eight core infrastructure sectors dropped by 2.5 per cent in October, mainly due to decline in production of crude oil, natural gas, refinery products and steel.

The production of eight core sectors had contracted 5.5 per cent in October 2019, data released by the Commerce and Industry Ministry showed on Friday.

While coal, fertiliser, cement and electricity recorded positive growth, crude oil, natural gas, refinery products and steel registered negative growth in the month under review.

During April-October, the sectors’ output declined by 13 per cent as compared to a growth of 0.3 per cent in the same period of the previous year. The output of crude oil, natural gas, refinery products, and steel declined by 6.2 per cent, 8.6 per cent, 17 per cent, and 2.7 per cent, respectively. The growth rate in fertiliser production has declined to 6.3 per cent in October, from 11.8 per cent in the same month last year.

On the other hand, the coal, cement and electricity sector output grew by 11.6 per cent, 2.8 per cent and 10.5 per cent, respectively, during the month under review.

The output of these eight key sectors is in the negative zone since March. In September, the rate of contraction was 0.1 per cent.

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