Core Industries
Output of India's eight core industries grows 4.4 percent in September
New Delhi: The output of eight core sectors grew 4.4 percent year-on-year in September 2021, primarily on low base and healthy performance by sectors such as natural gas and cement.
The eight core industries comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP).
"The combined Index of Eight Core Industries stood at 126.7 in September 2021, which increased by 4.4 percent (provisional) as compared to the Index of September 2020. The production of coal, natural gas, refinery products, fertilizers, steel, cement and electricity industries increased in September 2021 over the corresponding period of last year," said an official release by the Ministry of Commerce and Industry.
The growth rate in September is, however, much lower than August when the combined output of core sectors had recorded 11.5 percent jump.
As per data released by the Ministry of Commerce and Industry, crude oil production was in negative zone during the month of September this year.
Coal production increased by 8.1 percent year-on-year in September, 2021. Crude Oil production declined by 1.7 percent in September, 2021 over same month last year.
As per the official data, natural gas production increased by 27.5 percent year-on-year in September, 2021.
Petroleum refinery production increased by 6.0 percent in September, 2021 over September, 2020. Fertilisers production increased marginally by 0.02 percent in September, 2021 over September, 2020.
Steel production increased by 3.0 percent in September, 2021 year-on-year while cement recorded 10.8 percent growth. Electricity generation increased by 0.3 percent during this year when compared with the corresponding month last year.
Commenting on the core sector data, ICRA Chief Economist Aditi Nayar said, "With the base effect wearing off and copious rainfall dampening mining and construction activities, as well as demand for electricity, the core sector growth slid to 4.4percent in September 2021, in line with our expectations."
"Lower core sector growth and the impact of semiconductor shortages on auto output are expected to dampen the September 2021 IIP growth to 3-5 percent, despite the pre-festive season inventory buildup suggested by the GST e-way bill data," she added.
The growth rate of Index of Eight Core Industries during April-September 2021-22 was 16.6 percent as compared to the corresponding period of previous financial year.
(With UNI inputs)
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