Eight Core Industries

Seasonally adjusted eight core output shows signs of recovery in November 2019.

Published monthly by the Ministry of Commerce and Industry. Updated till November 2019 (Published on December 31st, 2019).
Note: The YoY%, 3m average and MoM% series have been calculated over the seasonally-adjusted series.

Recent Data Trend

Production activities in eight core industries (a measure of infrastructure output of the economy) for November 2019 contracted for fourth month in a row. However, the slowdown of -1.5% YoY shows signs of recovery as compared to -5.8% YoY in October 2019, an all-time low since the construction of the index with 2011-12 base year.

The narrowing contraction is majorly due to growth in production of primary sources of energy like Petroleum refinery products and electricity generation, which has a major weightage of 28.3% and 19.85%, respectively, among the eight core industries.

Along with this, when seasonally adjusted, the eight core output has started showing signs of positive growth for two consecutive months, as it grew by 3.9% MoM in November 2019 vs -5% MoM in September 2019 . Therefore, this indicates revival signs in infrastructure output in the economy.

If this impact is carried further in the upcoming IIP data for November 2019, then we can say that the Indian economy has started showing signs of recovery after a prolonged period of slowdown.

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: January 31st, 2020

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.