Core sector paces up with 8.4% growth in April on higher production

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India's eight core sectors grew 8.4 percent in April, quickening from a revised 4.9 percent in March, the commerce ministry said on May 31.

Output in six of the eight core sectors grew in April. These sectors were coal, electricity, refinery products, fertilizers, cement, and natural gas.

While the production of coal rose by 28.8 percent on a year-on-year basis in April, electricity generation rose 10.7 percent.

Refinery products output rose 9.2 percent and fertilizers production gained 8.7 percent in April. Cement production gained 8 percent while natural gas output rose 6.4 percent.

Production of steel declined 0.7 percent in April while that of crude oil fell 0.9 percent.

The data are provisional and can be revised later. Core industries data for May will be released on June 30.

The final growth rate of the index of eight core sectors for January 2022 was revised to 4 percent from its provisional level of 3.7 percent.

The growth rate of the eight sectors during April-March 2021-2022 was 10.4 percent as compared to the corresponding period of the last financial year.

Data released separately today showed India's GDP is estimated to have grown by 8.7 percent in FY22 after growth slid to 4.1 percent in the January-March quarter.

The statistics ministry's latest growth estimate for FY22 is 20 basis points lower than its second advance estimate of 8.9 percent, announced in February.

The COVID-19 pandemic and intermittent lockdowns have hit economic activity over the last couple of years.

In real terms, the GDP rise for FY22 compared to that of FY20 - before the pandemic hit - is a mere 1.5 percent.