Eight Core Industries of India

India's core sector output slowed down in May.

Published monthly by the Ministry of Commerce and Industry. Updated till May 2018(Published on July 2nd, 2018).
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 growth slowed down to a ten-month low of 3.6% year-on-year (YoY) in May'18, compared to the 4.6% YoY expansion in the previous month and 3.9% 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 for the sixth straight month by 2.9% YoY and natural gas production which contracted by 1.4% YoY.

The cement and steel output which catapulted the eight core sector growth in the previous year witnessed a slowdown in output growth in May'18. The cement output grew by 5.2% YoY, the slowest pace in the last seven months, while the steel output rose by a mere 0.5% over the last year.

The moderate expansion in the core sector output was helped by acceleration in electricity generation to 3.5% YoY in May, a rise in coal production by 12.1% YoY and fertilizer production which grew by 8.4% YoY, albeit supported partially by a statistical uplift.

Cumulatively, during Apr-May'18, the core sector production expanded by 4.1% YoY, better than the last year performance of 3.3% YoY growth.

We believe, despite a moderate slowdown in May, the infrastructure output is likely to outperform 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 the industrial production in the first quarter to be healthy.

The manufacturing sector activity, as indicated by manufacturing PMI data, supports the expansion in the production activity. The manufacturing PMI rose to its highest level of 53.1 in Jun'17, highest since Dec'17, marking an expansion for the 11th consecutive month.

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: July 31st, 2018

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.