Eight Core Industries of India

India's core sector growth slows down to a four-month low of 4.3% in September.

Published monthly by the Ministry of Commerce and Industry. Updated till Sep 2018(Published on November 1st, 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 grew at four-month low of 4.3% year-on-year (YoY) in Sep'18 compared to the 4.2% YoY in the previous month and 5% YoY in Sep'17. The deceleration in output growth was due to continued weak performance of crude oil production which has been contracting since the beginning of the year by 4.2% and natural gas production which contracted by 1.8% YoY.

The output of coal and steel in the eight infrastructure sectors witnessed a slowdown in growth. The coal output grew by 6.4%, while the steel output rose by a mere 3.2% over the last year.

The moderate core sector output was helped by acceleration in electricity generation to 8.2% in Sep'18, rise in cement production by 11.8% YoY and fertilizers grew by 2.5% YoY.

Cumulatively, during Apr-Sep'18, the core sector production expanded by 5.5% YoY, better than the last year performance of 3.2% YoY growth.

We believe, despite a moderate slowdown in Sep'18, the infrastructure output has outperformed the past year performance in the second quarter. Given the index of eight core output constitutes more than 40% of the industrial production in the nation, we can expect the industrial production to also show similar performance in the second quarter. The manufacturing sector activity as indicated by manufacturing PMI rose to a level of 52.2 in Sep'18, reflecting strengthened demand in export growth. This comes even after escalating pressures from the external side (such as pressures from US-China trade war, lower rupee against USD).

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: November 30th, 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.