E-Paper
Core sector output grows 9.4% in July
This is the fifth consecutive month of growth in the core sector.
The output of eight core sectors grew 9.4% in July due to strong growth in refinery throughput, electricity generation, and steel and cement production, official data showed on Tuesday.
This is the fifth consecutive month of growth in the core sector.
Core sector had seen a 9.3% increase in June.
In July, cement production grew 21.8% annually, while steel output went up by 9.3% and coal output by 18.7%, data released by the commerce and industry ministry showed. Refinery products and electricity grew at 6.7% and 9% respectively in July, showed the data.
The figures indicate a strong output recovery although a part of it is due to the statistical effect of a contraction seen in the same month a year ago.
The production levels of five core sector segments—crude oil, natural gas, fertilizer, steel and electricity—are now higher than the pre-Covid levels (February 2020), said Devendra Kumar Pant, chief economist at India Ratings & Research.
“The recovery post the second Covid wave has been swifter than the first wave. This implies that the core segment which, carries a weight of 40.27% in the Index of Industrial Production, will also provide cushion to the industrial sector recovery,” said Pant. He also said that given the uncertainty around a third wave, it was still early days in calling out a meaningful recovery, from the latest numbers.
