Industrial Output Snaps Recovery With 2.6% Contraction In Eight Core Sectors

The output of eight core sectors contracted by 2.6 per cent in November 2020, mainly ascribed to a decline in the prediction of crude oil, refineries, natural gas, steel, and cement. According to data released by the commerce and industry ministry showed on Thursday, December 31, the production of the core sectors had registered a growth of 0.7 per cent in the corresponding month last year. The output of the core sectors remained in the negative trajectory for the ninth consecutive month. After showing recovery signs in September this year, the output growth of these sectors declined in the months of October and November. (Also Read: Industrial Output Grew In October Despite Contraction In Eight Core Sectors )

The combined index of eight core industries stood at 125.9 in November 2020 which declined by 2.6 per cent (provisional) as compared to the index of November 2019. The cumulative index of eight core sectors during the period of April to November this year contracted by 11.4 per cent, indicating the adverse impact on industrial production amid COVID-19 lockdown as compared to the 0.3 per cent growth in the corresponding period of last year. There was a broad-based contraction across the sectors during this period except fertilizer, the output of which grew by 3.8 per cent, due to favourable monsoon and sowing season this year.

Meanwhile, the industrial production based on the index of industrial production (IIP) recovered to an eight-month high and increased by 3.6 per cent year-on-year as against a contraction by 6.6 per cent in the corresponding month last year. The industrial output grew in October this year, despite the contraction in eight core sectors by 2.5 per cent, which almost has a 40 per cent weightage in the index of industrial production.