Eight Core Industries of India

India's infrastructure output grows at a 5-month high of 4.7% YoY in March 2019

Published monthly by the Ministry of Commerce and Industry. Updated till March 2019 (Published on April 30th, 2019).
Note: The YoY%, 3m average and MoM% series have been calculated over the seasonally-adjusted series.

Recent Data Trend

Production of eight core industries (which indicates the infrastructure output of the country) of India rose to a 5-month high 4.7% YoY in March 2019. The 4.7% YoY growth was higher than the 2.2% YoY growth during the previous month. The core sector growth in March 2019 was also slightly higher than the 4.5% YoY growth of a year ago (March 2018).

The growth in the overall infrastructure output was led by the higher growth in output of coal, steel, cement, refinery products and fertilisers. After three months of sustained contraction, the output growth of petroleum refinery products, which constitutes 28% of the eight core output index, witnessed a turnaround growth of 4.3% YoY in March 2019. The production of cement and steel (5.37% and 17.92 weights in the core index) stood at 33,124 and 10,308 thousand tonnes in March 2019 respectively. Higher infrastructure and construction activities in the country led the steel production to grow by 6.7% in March 2019, higher than 4.7% growth in March 2018. The year on year growth in output of cement was at a 5-month high of 15.7% YoY in March 2019. Improvement in output growth of cement and steel has been aided by the government's infrastructural investments (capex spending).

The production of crude oil (9% weight in eight core index) continued to witness a contraction which has been declining since the for the last 16 consecutive months falling by -6.2% YoY in March 2019, higher than the - 1.6% output contraction in the corresponding period a year ago.

The higher growth in core output is likely to bring about a higher growth in the overall industrial output during the same month. Overall, in FY19, the core output growth stands at 4.3% supported by growth in cement and coal sectors. But, the production of refinery products, electricity and steel witnessed a moderation in growth rates.

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. For more information, please visit the official government website.

Next Release Date: May 31st, 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.