Eight Core Industries of India

Core sector hits a 16-month low of 3.5% YoY in Nov'18 on account of fall in fertilizer and crude oil productions.

Published monthly by the Ministry of Commerce and Industry. Updated till Nov 2018(Published on December 31st, 2018).
Note: The YoY%, 3m average and MoM% series have been calculated over the seasonally-adjusted series.

Recent Data Trend

India's eight core industries output slowed down to 3.5% year-on-year (YoY) in Nov'18, a lowest since Jul'17. Lower crude oil and fertilizers production led to a contraction in India's core sector. The output growth of fertilizers which constitutes 3% of the eight core output index fell sharply by 8.1% in Nov'18 compared to positive growth of 0.3% in the corresponding month of last year. The production of crude oil (9% weight in eight core index) continued to decline by 3.5% in Nov'18.

The production of steel grew by 6.6% YoY in Nov'17, the highest compared to the last 4 months. The growth is mainly due to continued government's focus on infrastructure, affordable housing, power transmission, and the railways. With healthy domestic demand, production for steel is likely to grow further.

The cement production grew at the slowest pace in a year to 8.8% YoY in Nov'18 due to the high base effect. The cement industry is majorly driven by infrastructure and housing demand. In case of housing, there has been a reduction in cement demand due to a slowdown in the real estate sector. As the government is the key consumer of the cement with its continued focus on various infrastructure and allied projects (such as Bharatmala, Housing for all, Sagarmala and metro construction), we can expect the cement production to continue showing positive growth in FY19.

Cumulatively, during Apr-Nov'18, the core sector production expanded by 5.1%, better than the last year performance of 3.9% during Apr-Nov'17.

Overall, the fall in eight core output growth due to negative growth in crude oil and fertilizers was partially offset by expansion in steel, cement, and coal.

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: January 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.