The output of the eight core industries grew 16.8 per cent year-on-year in May, while a sharp jump of 60.9 per cent in April led to a weak base due to factories being shut due to the stringent nationwide lockdown last year.
Several states imposed lockdown during April-May to control the spread of the second wave of Covid-19.
Data released by the Ministry of Commerce and Industry shows that during April-May, core sector output grew by 35.8 per cent in the same period a year ago, as compared to a de-growth of 29.4 per cent during the same period a year ago.
Even as the low base effect remained in May, the impact of the second wave of the pandemic was visible, as core sector output, captured by the Index of Eight Core Industries (ICI), fall by 3.75 per cent sequentially.
Six out of Eight Core Sectors witness positive growth
Eight sectors – coal, steel, electricity, natural gas, cement, fertiliser, refinery products and crude oil – comprise about two-fifths of India’s industrial output. According to the data released by the government on Wednesday, July 28, 2021, all of the eight sectors except fertilisers and crude oil showed growth in May as compared to a year ago.
Steel sector witness highest growth of 59.3%
Steel production grew by 59.3 per cent in May, as against a decline of 40.4 per cent in the same month of 2020, while cement grew by 7.9 per cent, as against a 21.4 per cent decline in the previous May. Coal production grew by 6.9 per cent from a 9 per cent contraction in May 2020. Refinery grew by 15.3 per cent.
Factory Output is expected to be 25%-30% in May
Experts had said that factory output (index of industrial production or IIP) in May is expected to be in the range of 25-30 per cent. Factory output data for May will be released over the next two weeks.
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