Eight core sectors register 11.6% output growth in August 2021

Sectors including steel, fertilizers, crude oil, steel, natural gas and electricity have exhibited positive growth

September 30, 2021

Sectors have grown by 3.9 % in comparison to August 2019, comparative output remains low.

19.3% increase in core sector output was observed in January-May 2021.

FPI growth, GDP growth and the increase in supply and demand have put the economy on a V-shaped growth trajectory.

Purchasing Managers Index for the month of June 2021 was documented at 56.7 points.

The eight core sectors of the economy consisting of steel, electricity, natural gas, fertilizer, coal, cement, refinery products and crude oil exhibited a 11.6 % growth in August 2021 from 9.9 % in the preceding month. Although overall output was lower than that of the same period in 2019, the sector is seen to have grown by 3.9 %. The sectors that exhibited vibrant growth include electricity (122.2 %), fertilisers (108.5 %), crude oil (105 %), steel (103.5 %) and natural gas (126.3 %). The January-May period for FY2021 saw a 19.3 % increase in core sector output. 

The growth of the economy is buoyed by strong macroeconomic fundamentals as well as a growth in both supply and demand. Foreign portfolio investments (FPI) inflows o have increased, inflation has been maintained at a stable level and provisional GDP estimated for the April-June quarter of FY2021-22, ushering in a V-shaped recovery pattern. The Purchasing Managers Index (PMI) has been documented at an 18 month high of 56.7 points. The easing of lockdown, coupled with growth in manufacturing, construction and agriculture sectors have furthered the scope of economic growth. However, experts at ratings agency ICRA maintained that the positive developments witnessed in the month of August could be tested by the September rains and the after-effects of the pandemic.