Eight Core Industries of India

Growth of eight core industries slows to 2.6% YoY in April 2019.

Published monthly by the Ministry of Commerce and Industry. Updated till April 2019 (Published on May 31st, 2019).
Note: The YoY%, 3m average and MoM% series have been calculated over the seasonally-adjusted series.

Recent Data Trend

India's eight core industries output slowed down to 2.6% YoY in April 2019, after rising to a 5-month high of 4.7% YoY in the last month. The slump in the core sector output growth is on account of deceleration in growth across all the eight core infrastructure sectors. The production of cement, steel, coal grew marginally by 0.8% YoY, 1.5% YoY and 2.8% YoY, respectively in April 2019. The only bright spot in an otherwise dismal picture of core sectors output is the growth in electricity generation, which recorded a 5-month high growth of 5.8% YoY in April 2019.

The cement production grew at an 18-month low of 0.8% YoY in April 2019, partly due to a higher base effect. A subdued cement demand due to a slowdown down in government infrastructure projects (a key consumer of cement) and a lull in real estate sector could have also attributed for a meager growth in cement production. Steel output growth also witnessed its 11-month low growth of 1.5% YoY in April 2019.

The core sector growth is on a declining trend since October 2018, depicting a continued sluggishness in industrial activities which has led to a 5-year low economic growth of 6.8% for FY19. The government will need to make it a foremost priority to revive industrial activity and thus improve economic activity in the short and the medium term. Also with increased thrust on the infrastructure sector by the government, we can expect the cement and steel output to reach back to its double-digit growth in the coming months.

Brief Overview of Eight Core Industries of India

The data on production of eight core industries of India is published monthly by the Ministry of Commerce and Industry. The current base year for the index of the series is 2011-12=100. The eight core industries included are- Coal, Crude oil, Natural Gas, Petroleum refinery products, Fertilizer, Cement, Steel, and Electricity generation. These eight industries comprise 40.27% of the weight of the items included in the Index of Industrial Production.

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Next Release Date: July 1st, 2019

Production of Eight Core Industries-Quarterly

Note: The QoQ% has been estimated onn the seasonally-adjusted series.

Production of Eight Core Industries-Annual

Note: The data in the above graph is of the base year 2004-05=100 and has been discontinued since March 2017.