Core Sector Growth Slows To 9-Month Low Of 3.3 Per Cent In August: Govt Data

The production growth of eight infrastructure sectors was 9.8 per cent during April-August this fiscal year, compared to 19.4 per cent a year ago

The growth output of eight core infrastructure sectors grew 3.3 per cent in August, the lowest in nine months, as against 12.2 per cent in the year-ago period, according to official data released on Friday. The previous low was in November 2021 at 3.2 per cent.

The production growth of eight infrastructure sectors, coal, crude oil, natural gas, refinery products, fertiliser, steel, cement, and electricity, was 9.8 per cent during April-August this fiscal year, compared to 19.4 per cent a year ago. 

The Eight Core Industries comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP). Details of yearly and monthly indices and growth rates are provided at Annex I & II respectively.

According to the government release, final growth rate of Index of Eight Core Industries for May 2022 is revised to 19.3 per cent from its provisional level 18.1 per cent. The growth rate of ICI during April-August 2022-23 was 9.8 per cent (P) as compared to the corresponding period of last fiscal year.

The summary of the Index of Eight Core Industries is given below:

Coal – Coal production (weight: 10.33 per cent) increased by 7.6 per cent in August, 2022 over August, 2021. Its cumulative index increased by 22.7 per cent during April to August, 2022-23 over corresponding period of the previous year.

Crude Oil – Crude Oil production (weight: 8.98 per cent) declined by 3.3 per cent in August, 2022 over August, 2021. Its cumulative index declined by 1.1 per cent during April to August, 2022-23 over the corresponding period of previous year.

Natural Gas - Natural Gas production (weight: 6.88 per cent) declined by 0.9 per cent in August, 2022 over August, 2021. Its cumulative index increased by 2.6 per cent during April to August, 2022-23 over the corresponding period of previous year.

Petroleum Refinery Products – Petroleum Refinery production (weight: 28.04 per cent) increased by 7.0 per cent in August, 2022 over August, 2021. Its cumulative index increased by 10.8 per cent during April to August, 2022-23 over the corresponding period of previous year.

Fertilizers – Fertilizers production (weight: 2.63 per cent) increased by 11.9 per cent in August, 2022 over August, 2021. Its cumulative index increased by 11.4 per cent during April to August, 2022-23 over the corresponding period of previous year.

Steel – Steel production (weight: 17.92 per cent) increased by 2.2 per cent in August, 2022 over August, 2021. Its cumulative index increased by 5.8 per cent during April to August, 2022-23 over the corresponding period of previous year.

Cement – Cement production (weight: 5.37 per cent) increased by 1.8 per cent in August, 2022 over August, 2021. Its cumulative index increased by 10.6 per cent during April to August, 2022-23 over the corresponding period of previous year.

Electricity – Electricity generation (weight: 19.85 per cent) increased by 0.9 per cent in August, 2022 over August, 2021. Its cumulative index increased by 10.5 per cent during April to August, 2022-23 over the corresponding period of previous year.