Core sector output grows by 12.7%

The ministry has revised the growth numbers of eight core industries for March and May 2022

August 1, 2022

Output levels of coal, cement, electricity and refinery products grew by 15% or more

Output levels of coal, cement, electricity and refinery products grew by 15% or more. Natural gas rose by 1.2%, steel by 3.3%, and fertilisers by 8.2%

Crude oil output recorded the first uptick in several months in May 2022

Experts said that the low base from 2021 has led to an increase in June’s growth rate

India’s core sector output grew by 12.7%, according to data released by the Ministry of Commerce and Industry.

Compared to output levels of June 2021, output levels of coal, cement, electricity and refinery products grew by 15% or more. Natural gas rose by 1.2%, steel by 3.3%, and fertilisers by 8.2%.

Crude oil output recorded the first uptick in several months during May, this year.

The ministry has revised the growth numbers of eight core industries for March and May. Core sectors’ growth in March was changed to 4.8%, from an earlier estimate of 4.9%. May’s number on the other hand was pegged at 19.1%, compared to the previous estimate of 18.1%.  

June marked the second successive month to witness double-digit growth in core sectors, which account for about 40% of the Index of Industrial Production (IIP). The core sectors reported an 8% growth in June, compared to 2019 levels. 

The output of fertilisers and cement recorded a sequential month-on-month (MoM) growth in June, at 6.9% and 0.32%, respectively. 
According to experts, coal output in June increased by 31%. Moderation of growth rate stood at 12.7%, compared to 19.3% in May, which they mentioned, was a result of the ‘normalising base’ effects of Covid-19’s second wave in 2021. The IIP had grown to 19.6% in May.

The experts further added that the low base from 2021 has led to an increase in June’s growth rate. Due to a rise in demand for investments, the core sectors are expected to maintain their positive level of output in the coming months.