Eight core sectors output growth remain in negative trajectory

In December 2020, the eight core sectors output growth remained in a negative trajectory for the 10th successive month with a contraction of 1.3% compared with negative growth of 1.3% during November 2020 and 3% in December 2019.

Coal production growth grew by 2.2% in December 2020. Coal production has recorded positive growth which indicates revival in demand for power post easing of lockdown norms and resumption of industrial activities.

Crude Oil production has fallen by 3.6% in December 2020 due to COVID-19 restrictions/lockdown. The negative growth in crude oil production has been sustained for nearly 3 years.

Natural gas production in the country fell by 7.1% in December. This is the 19th consecutive month of de-growth in natural gas production.

Refinery production has fallen by 2.7% in Dec 2020. There has also been an increase in refinery utilisation during December '20 which is now 101% and this can be ascribed to the increase in demand for petroleum products as there is an uptick in economic activities.

Fertiliser production has fallen by 2.9% due to a high base effect and as the Rabi sowing season almost comes to an end.

Output of steel sector has contracted for the second consecutive month by 2.7% in December after registering 3 consecutive month of positive growth during Aug-October 2020.

Cement production fell to a 4-month low falling by 9.7% in December 2020 compared with -7.3% in November 2020 and 5.4% in December 2019.