Core sector output grows by 18.1% in May ‘22

This was the highest growth for the sector in 13 months

July 1, 2022

The output of coal grew by 25.1%, and crude oil by 4.6%

Refinery products grew by 16.7%, fertiliser by 22.8%, cement by 26.3%, and electricity by 22%

The Index of Industrial Production (IIP) is expected to grow by 16-19% in May 2022

In April this year, the cumulative growth of core infrastructure sectors was at 9.3%

India witnessed the total output growth of eight core infrastructure sectors by 18.1% in May 2022, the highest in 13 months, according to official data. The core output growth was 16.4% in the same period last year.

The sectors are coal, crude oil, refinery products, fertiliser, cement, steel, natural gas, and electricity and account for 40.27% of the IIP.

According to the data, the output of coal grew by 25.1%, crude oil by 4.6%, refinery products by 16.7%, fertiliser by 22.8%, cement by 26.3%, and electricity by 22% in May 2022.

The output of natural gas was at 20.1%, and for steel, it was 55.2% in FY21.

According to experts, the IIP is expected to grow by 16-19% in May 2022, due to the growth in the core sector, and other high-frequency indicators. The eight core industries represent 40.27% of the IIP.

The core index reported a growth of 8.1% in May 2022. Fertiliser, coal, cement and electricity output witnessed a double-digit expansion in the same period, compared to pre-Covid levels.

In April this year, the cumulative growth of core infrastructure sectors was at 9.3%. The last high growth was seen in April 2021, when it was 62.6%.