Eight core sectors dip 23 per cent in May 2020

Ministry of Commerce and Industry released the latest data on the growth of eight core infrastructure industries, which shows that these core industries have contracted by 23.4 per cent YoY in May 2020, led by the nationwide lockdown to prevent the spread of COVID-19.

These core sectors had expanded by 3.8 per cent in May 2019. In April, the sectors' output contracted by a record 37 per cent. The eight core industries namely coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity accounts for 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).   

Among eight core sectors, coal production has 10.33 per cent weight, which dipped 14 per cent YoY in May 2020. Petroleum Refinery production (28.04 per cent weight) decreased by 21.3 per cent YoY in May 2020. Electricity generation (19.85 per cent weight) dropped 15.6 per cent YoY while, cement production (5.37 per cent weight) fell 22.2 per cent. However, fertiliser production (2.63 per cent weight) grew by 7.5 per cent YoY in May 2020.

Steel production (17.92 per cent weight) dipped 48.4 per cent YoY in May 2020 and its cumulative index fell by 63.3 per cent YoY from April to May 2020-21. Crude Oil production (8.98 per cent weight) declined by 7.1 per cent YoY in May, 2020 while, natural gas production, which had 6.88 per cent weight, declined by 16.8 per cent YoY in May 2020.