Core sector output shrinks 38% in April

Prathap Nair

30/05/2020

The lockdown resulted in the output of core sector contracting by 38.1% in April 2020 compared to the same month in 2019, according to the Office of Economic Adviser, Department for Promotion of Industry and Internal Trade.

Final growth rate of Index of Eight Core Industries for January 2020 remains unchanged at 2.2%. The Eight Core Industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).

Coal production (weight: 10.33 per cent) declined by 15.5 per cent in April, 2020 over April 2019. Its cumulative index declined by 0.4 per cent during April to March, 2019-20 over corresponding period of the previous year.

Crude Oil production (weight: 8.98 per cent) declined by 6.4 per cent in April 2020 over April 2019. Its cumulative index declined by 5.9 per cent during April to March, 2019-20over the corresponding period of previous year.

The Natural Gas production (weight: 6.88 per cent) declined by19.9 per cent in April 2020 over April 2019. Its cumulative index declined by 5.6 per cent during April to March, 2019-20 over the corresponding period of previous year.

Petroleum Refinery production (weight: 28.04 per cent) declined by 24.2 per cent in April 2020 compared with April 2019. Its cumulative index increased by 0.2 per cent during April to March, 2019-20over the corresponding period of previous year.

Fertilizers production (weight: 2.63 per cent) declined by 4.5 per cent in April 2020. Its cumulative index increased by 2.7 per cent during April to March 2019-20 over the corresponding period of previous year.

Steel production (weight: 17.92per cent) declined by 83.9 per cent in April 2020 over April 2019. Its cumulative index increased by 3.4 per cent during April to March 2019-20 over the corresponding period of previous year.

There was a 86 per cent decline in cement production (weight: 5.37 per cent) in April 2020 over April 2019. Its cumulative index declined by 0.9 per cent during April to March, 2019-20 over the corresponding period of the previous year.

Electricity generation (weight:19.85 per cent) declined by 22.8 per cent in April 2020 over April 2019. Its cumulative index increased by1 per cent during April to March 2019-20 over the corresponding period of previous year.

The data for February, 2020, March, 2020 and April, 2020 are provisional.The industry-wise weights indicated above are individual industry weight derived from IIP and blown up on pro rata basis to a combined weight of ICI equal to 100.

Since March 2019, a new steel product called Hot Rolled Pickled and Oiled (HRPO) under the item ‘Cold Rolled (CR) coils’ within the production of finished steel has also been included.