Eight Core Industries

Easing of lockdown measures catapults eight core output at a slower pace in June 2020.

Published monthly by the Ministry of Commerce and Industry. Updated till June 2020 (Published on  July 31st, 2020).

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

Recent Data Trend

The growth in eight-core industries' output contracted by 15% YoY in June 2020, slower than the negative growth of 22% YoY in May 2020. Other than fertilizers, all other core sectors have recorded a deceleration in growth. The lower pace of contraction in June indicates the relaxation in controlling people's movement since June 1, 2020.

Production of coal saw a much steeper contraction of 15.5% YoY in June compared to May 2020 on account of slow pick up in industrial and commercial activities. Crude oil production has seen a contraction for 31 consecutive months and in June, it contracted by 6% YoY compared with 7% YoY in May 2020. While the four consecutive months of contraction in electricity production, though it eased in June, show improvement in electricity demand with a resumption in economic activities.

The core sector growth in the first quarter of FY2020-21 contracted by 24.7% YoY, with steel and cement industries recording a sharp contraction of more than 30%. This reflects the nation-wide lockdown imposed due to the outbreak of the deadly virus (Covid-19) industries experiencing a substantial loss in production.

The surge in Covid-19 cases in some parts of the country which has led to extension of lockdowns at the state level can continue to impact production strength at various industries. Though the negative growth in core sectors may continue, the pace of negative growth may improve.

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: August 30th, 2020

Production of Eight Core Industries- Quarterly

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.