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Eight core industries' output rose 16% YoY in May, data show

The cumulative output of the core sector industries in the first two months of FY22 has risen by 35 percent, as compared to a 30 percent fall in the same period of the previous financial year.

June 30, 2021 / 06:33 PM IST
Representative Image. Courtesy : Reuters

Representative Image. Courtesy : Reuters

Led by a continuing low-base effect, the combined output of the eight core sector industries rose by 16.8 percent in May, as compared to a year ago. Core sector output had risen by a massive 60 percent in the previous month of April.

The data released by the commerce and industry ministry on June 30 showed production declined in two out of the eight core sector industries - crude oil and fertilisers.

The eight core industrial of coal, crude oil, natural gas, refinery products, steel, cement, fertiliser and electricity have a combined weight of over 40 percent in the Index of Industrial production, or IIP.

“With the base becoming less distorted and the widening of state-wise restrictions, the core sector expansion expectedly flattened in April 2021. Additionally, the core index in May 2021 was a substantial 8% lower than the pre-COVID level of May 2019, led by all the components except natural gas," Aditi Nayar, Chief Economist, ICRA, said.