October 10 2017

Eight Core Industries of India

Growth in total production of eight core industries of India acclerated to 4.9% YoY in August 2017 from 2.6% YoY in July.

Published monthly by the Ministry of Commerce and Industry. Updated till August 2017(Published on October 3rd, 2017).

Recent Data Trend

Total production of the 8 core industries of India rose by 4.9% year on year in August 2017, accelerating from 2.6% YoY in July 2017. This is the highest growth rate in five months. Petroleum refinery products, which constitutes about 28% of the total production rose by 2.4% YoY after its production declined for the past two months. Production of coal grew by 15.3% YoY in August, a significant recovery from 0.6% growth in July. The growth is mainly due to the efforts by India to increasingly use domestic coal. Electricity generation rose by 10.3% YoY, highest since April 2016.

According to the expenditure component of GDP, the industry sector grew by 1.6% YoY in the April-June quarter of 2017 the lowest growth rate in the last 20 quarters. The growth rate of the industrial sector has been decelerating since Q1 2016. Furthermore, the RBI revised down its growth estimates for the financial year 2017-18 to 6.7% in the Monetary Policy Review of October 2017. In this context, the growth of eight core industries is a good news but for the overall economic activity to pick up, the growth in August needs to be carried forward into the coming months as it includes the infrastructure industries of the economy.

Brief overview of 8 core industries of India

The data on production of 8 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 8 core industries included are- Coal, Crude oil, Natural Gas, Petroleum refinery products, Fertilizer, Cement, Steel, and Electricity generation. These 8 industries comprise of 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: October 31st, 2017

8 Core Industries of India(2004-05=100)

Note: The data in the above graph is of the base year 2004-05=100 and has been discontinued since March 2017.