Eight Core Industries

Cement and oil products lead to decline in infrastructure output growth to 0.2% YoY in June.

Published monthly by the Ministry of Commerce and Industry. Updated till July 2019 (Published on August 30th, 2019).
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 a 4-year low of 0.2% year-on-year (YoY) in June'19, compared to 4.3% YoY expansion in the previous month and 7.8% YoY in June last year. The sharp decline in infrastructure output was weighed down by contraction seen in the production of oil products as well as production in cement. Weak performance in cement saw a contraction for the third straight month by -1.5% YoY while refinery products, crude oil and natural gas witnessed a fall in output by -9.3% YoY, -6.8% YoY and -2.1% YoY.

Core sectors that performed well included electricity generation, fertilizers and coal production. Electricity generation registered a robust growth of 7.3% YoY in June'19. While fertilizers and coal production expanded by 1.5% YoY and 3.2% YoY.

Cumulatively, during Apr-June'19, the core sector production expanded by 3.5% YoY, lower than the last year performance of 5.5% YoY growth.

We believe, that the moderation in infrastructure output in June is in accord with the overall lack of momentum in the economy since the last quarter of 2018-19. Factory output (IIP) expansion also eased to 3.1% YoY in May'19 from 4.3% in April'19. However, we expect the core sector output in the economy to get a boost in the current fiscal year given the allocation towards infrastructure in the budget. Higher output in the near future can occur if we are to see an improvement in credit to industries.

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: September 30th, 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.