Eight core industries' output up by 6.8% in March; but don't cheer yet!

The combined output of the eight core industries rose by 6.8 per cent in March -- a 32-month high -- as compared to a year ago. This increase has been led by a low-base effect. In the previous month of February, the output had contracted 3.8 per cent. The cumulative core sector output in FY21 fell to (-) 7 per cent due to output contraction in as many as eight months of the financial year.

"The combined index of eight core industries stood at 143.1 in March, 2021, which increased by 6.8 per cent (provisional) as compared to the index of March 2020. Its cumulative growth during April to March, 2020-21 has been (-) 7.0 per cent. Final growth rate of index of eight core industries for December 2020 is revised to 0.4 per cent from its provisional level (-) 1.3 per cent. The eight core industries comprise 40.27 per cent of the weight of items included in the index of industrial production (IIP)," stated the Ministry of Commerce and Industry.

The ministry data on April 30 showed production declined in four out of the eight core sector industries. Cement production rose the highest, while coal sector witnessed the sharpest fall at 21.9 per cent.

Crude oil production declined 3.1 per cent year-on-year, but natural gas production increased by 12.3 per cent in March. Petroleum refinery production declined by 0.7 per cent while fertilisers production dipped by 5 per cent.Cement production increased by 32.5 per cent and steel production increased by 23 per cent. Electricity generation increased by 21.6 per cent.

Also read: Eight core industries' output shrinks 4.6% in Feb

Also read: Eight core industries' output grows 0.1% in January 2021