Eight Core Industries of India

Core sectors' output growth hits a 19-month low of 1.8% in Jan'19 on account of contraction in energy sector.

Published monthly by the Ministry of Commerce and Industry. Updated till Jan 2019(Published on February 28th, 2019).
Note: The YoY%, 3m average and MoM% series have been calculated over the seasonally-adjusted series.

Recent Data Trend

A contraction in the production of crude oil, refinery products, and electricity generation decelerated India's eight core industries' output growth in Jan'19. Core sector output growth reached a 19-month low of 1.8% YoY. This was lower than the 2.6% YoY growth recorded in last month.

Electricity generation and refinery products contracted by 0.4% YoY and 2.6% YoY in Jan'19, as against 11% and 7.7% in the corresponding month last year, respectively. The energy sector performance has not been up to the par primarily due to lower crude oil prices since Oct'18, impacting both crude oil production as well as exports of refinery products.

The revival of growth in fertiliser production to 10.5% YoY in Jan'19 is notable as it stayed in negative terrain for the past three months. This is due to a fall in natural gas prices and an increase in its production. Natural gas is the key raw material used to produce urea-fertilisers, constituting 70% of the production cost.

The steel production slumped to 8.2% YoY, as against 13.2% YoY in the last month. This is due to a slowdown in real estate and automobile sector (high users of metals). Despite an unfavourable base effect, the cement sector growth stood at 11% YoY in Jan'19, compared to 11.6% YoY last month. The robust demand for cement was majorly driven by infrastructure segment and other government projects.

Core sector growth is on a declining trend since Oct'18, suggesting a continued sluggishness in industrial activities and a weak economic growth in the second half of the FY19. As core sector output accounts for around 41% of overall industrial production, we can expect a low industrial growth in the month of Jan'19.

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, please visit the official government website.

Next Release Date: March 31st, 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.