Eight Core Industries

Fall in seasonally adjusted eight-core output casts a shadow over hopes of revival.

Published monthly by the Ministry of Commerce and Industry. Updated till December 2019 (Published on January 31st, 2020).

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

Recent Data Trend

Growth rate in eight core industrial production activities revived to 1.3% yoy in December 2019  after remaining in a negative zone for four consecutive months, supported by expansion in the production of coal, steel, and cement. Coal production rebounded to 6.1% YoY after a period of anemic growth rate for most of this fiscal year (April 2019-March 2020) due to heavy monsoons and flooding across the country. Also, muted demand in the economy led to a decline in manufacturing and mining activities.

Ironically, when seasonally adjusted, we notice that the monthly growth rate in eight core industrial production fell to 2.1% after rising for two consecutive months. And the annual 3-month average growth rate though narrowed remains in the negative territory of -2.1% YoY.

Therefore, although it looks like the core production activities in the economy expanded, when excluding the seasonal factors we remain skeptic about its transition into improvement in industrial production.

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: February 28th, 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.