Core sector output expands by 12.7% in June

Crude oil output dropped 1.7% from a year ago

India’s eight core sectors’ output growth moderated to 12.7% in June from 18.1% in May, with all sectors except crude oil registering an uptick in production during the month.

Coal, Cement, Electricity and refinery products rose 15% or more, compared to June 2021 output levels, while natural gas (1.2%), steel (3.3%) and fertilisers (8.2%) grew at a milder pace.

Crude oil output dropped 1.7% from a year ago, returning to contractionary territory after recording the first uptick in several months this May.

The Commerce and Industry Ministry also revised the index of eight core industries for the months of March and May.

March core sectors’ growth was pared to 4.8% from 4.9% estimated earlier, while May’s output growth from these sectors was revised higher at 19.3% from the previous estimate of 18.1%

While June marks the second successive month of double-digit growth in core sectors, which constitute about 40% of the Index of Industrial Production (IIP), overall core output shrank 4.08% compared to the previous month.

Cement and fertilisers were the only sectors to record a sequential month-on-month growth in output in June of 6.9% and 0.32%, respectively.