Eight Core Industries

Nationwide lockdown catapults eight core output to contract by 23.4% YoY in May 2020.

Published monthly by the Ministry of Commerce and Industry. Updated till May 2020 (Published on  June 30th, 2020).

Note: The YoY%, 3m average and MoM% series have been calculated over the seasonally-adjusted series.

Recent Data Trend

The eight core industrial output contracted by 23.4% YoY in May 2020 slower than the decline in growth of 37% YoY seen in the previous month. The nationwide lockdown during April and May 2020 to control the spread of the Covid-19 pandemic, various industries experienced loss in production. Cement, steel, coal, and refinery and crude oil sectors were among the worst-hit sectors. The fertilizer sector alone registered positive growth in May.

Continued low demand in the auto and construction sector has contributed to the contraction in the production of steel and cement sectors but the output decline in the month has marginally improved compared to April 2020. On a similar note, even growth in electricity generation marginally improved compared with April on account of an increase in demand for power by residents. Partial opening up of industrial activity could have also led an increase in demand for electricity.

Cumulatively, during Apr-May FY2020-21, the core sector production contracted by 30.2% YoY, worse than last year's performance of 5.3% YoY growth.

Given that more economic activity (including non-essential services) was allowed to take place in June 2020, core sector output that contributes nearly 40.3% to the Industrial production index can show improvement in the coming months. However, the industrial production basket for May 2020 could be within the negative territory.

Brief Overview 

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, 2020

Production of Eight Core Industries-Quarterly

Note: The QoQ% has been estimated on 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.