Growth in eight core sectors' output surges by 16.8% in May: Govt data

This year's performance in May indicates a sharp growth as opposed to last year when a contraction of 21.4 % was recorded in all eight sectors. The dip was attributed to the slowdown in the economy due to Covid-19 pandemic.

The eight core sectors in India reported a surge last month after their output was logged at 16.8% in May, data released by the government on Wednesday showed. The spike has been registered mainly due to a low base effect and uptick in production of natural gas, refinery products, steel, cement and electricity, the data showed.

A worker busy at a factory in the Wazirpur Industrial area as lockdown curbs for industries and construction activity are eased in New Delhi on May 31. (PTI Photo)

This year's performance in May indicates a sharp growth as opposed to last year when a contraction of 21.4 % was recorded in all eight sectors. The dip was attributed to the slowdown in the economy due to Covid-19 pandemic. The eight infrastructure sectors include coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity.

In March this year, these key sectors had recorded a growth of 11.4%, and 60.9% in April.

The data released by the commerce and industry ministry showed that the production of natural gas, refinery products, steel, cement and electricity jumped by 20.1%, 15.3%, 59.3%, 7.9% and 7.3% in May. Last year, in May, these sectors saw contraction by (-) 16.8%, (-) 21.3%, (-) 40.4%, (-) 21.4% and (-) 14.8%, respectively.

Coal output, too, rose by 6.9% during the month under review as against a negative growth of 14% in the same month of the previous year.

Fertiliser and crude oil segments recorded a negative growth during the month under review.

During April-May this fiscal, the eight sectors grew by 35.8% compared to a negative growth of 29.4% in the same period last year.

India saw its sharpest dip this year in February, reversing two months of positive growth.

Data released by the industry department showed the core sector shrank 4.6% in February underlining the uncertain path to recovery in Asia’s third largest economy amid a second wave of coronavirus infection.