Eight Core Industries of India

Production growth of steel and electricity during Apr-May'19 leads overall infrastructure output growth to 5.1% YoY.

Published monthly by the Ministry of Commerce and Industry. Updated till May 2019 (Published on July 1st, 2019).
Note: The YoY%, 3m average and MoM% series have been calculated over the seasonally-adjusted series.

Recent Data Trend

India's infrastructure output grew at 5.1% year-on-year (YoY) in May'19, compared to the 6.3% YoY expansion in the previous month and 4.1% YoY in May last year. The moderate slowdown in the core sector output growth was due to the continued weak performance of crude oil production which contracted by -6.9% YoY in May'19. Production of coal also contracted by 1.8% YoY.

The cement production that witnessed a sudden fall to 2.3% YoY in April'19 from 15.7% YoY growth in March'19 saw a slight pick-up in May'19 with a growth of 2.8% YoY. Along with this, the production of natural gas in fact saw a zero growth rate in May and crude oil production recorded negative growth of -6.9% YoY.

An acceleration in electricity generation to 7.2% YoY helped moderate the core sector output in May. Along with this, steel production growth which catapulted the eight core sector growth in the last year supported core sector in May. The growth in steel production stood at a seven-year high of 19.9% in Mat'19. 

Cumulatively, during Apr-May'19, the core sector production expanded by 5.7% YoY, better than the last year performance of 4.4% YoY growth.

We believe, with moderate growth in May, the infrastructure output is likely to underperform the past year performance in the first quarter. Given the index of eight core output constitutes more than 40% of the industrial production in the nation, we expect a decline in industrial production in the first quarter. The manufacturing sector activity, as indicated by manufacturing PMI data, supports the contraction in production activity. The manufacturing PMI fell to 52.1 in June'19, from 52.7 in May.

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 visit the official government website.

Next Release Date: July 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.