India’s eight core sector output increased by 8pc in June from a year ago boosted by a strong recovery in steel output, according to the official data. Core sector output in June is still lower than the pre-pandemic levels, due to the impact of the second wave of COVID-19. The steel sector gained the most among the core sectors in June.
Core sector output contributes 40.27pc to the weight of India’s Index of Industrial Production (IIP). While steel production contributes 17.92pc to the core sector index.
In May, core sector output expanded by 16.3pc compared to May 2020, while in April it zoomed up by 60.9pc above the 2020 monthly indexes. The index mostly increased on a low base effect as 2020 was hit by the pandemic. The second wave of the pandemic too affected the economy and improvements in June output have failed to be impressive, according to market experts, reflecting a slower pace of recovery.
Steel production increased by 25pc compared to the year prior backed by the overall growth in industrial activity. In June 2020, steel output shrunk by 23pc, and the jump this year is a bounce back from the de-growth last year. Also, in June 2020, steel sector output was the weakest among the core sectors.
In June, the coal sector rose by 7.4pc from the prior year, while crude oil output de-grew by 1.8pc and was the only sector in the negative territory. Another sector that recorded a marginal growth was refinery products, up by 2.4pc and fertilizers up by 2pc. Natural gas rose by 20pc over the last year. Electricity output increased by 7.2pc in June compared to the prior year. Cement production rose by 7.2pc 548pc in June compared to 2020.