Eight Core Industries

Cement, refinery, coal and electricity sectors support infrastructure output growth in Feburary.

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

The growth in eight-core industries' (infrastructure output) in February, 2020 grew at the fastest pace in the last 10months. It expanded by 5.5% YoY in February compared to 1.4% YoY in the pervious month. The acceleration in eight core output which comprises 40.3% of the weights in the index of industrial production basket was aided by an increase in output of five industries ie, coal, cement, electricity, petroleum refinery products and fertilizers.

The output growth of petroleum refinery products, which constitutes 28% of the eight core output index, saw a turnaround growth of 7.4% YoY in February 2020, which was the highest growth in the past 19months. In January 2020 the level of production growth had fallen to 1.9%% YoY. The production of coal also grew at the fastest pace since the last one and half years at 10.3% YoY higher than 6.9% YoY in the pervious month. Electricity production reached a near 4 year high growth at 11% YoY in February 2020 which comes as a good news with the onset of summer and increase in demand for electricity.

In the recent past, lower demand seen in automobile sector in the country led the overall steel production to contract for the second consecutive month in February 2020 as it fell by-0.4% YoY. In comparison the output growth of cement grew at a 11-month high by 8.6% YoY compared to 5.1% YoY in the pervious month.

The sudden disruptions in the prodcution systems across sectors due to the 21-day lockdown amidst the outbreak of COVID-19, most of the companies are likely to incur additional expenses. Hence core sector production in the coming months are likely to be lower.

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: April 30th, 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.