Eight Core Industries decline for six months in a row; Index contracts 8.5% in Aug 2020

Eight Core Industries holds 40.27% of the weight of items included in the Index of Industrial Production (IIP).

Oct 01, 2020 08:10 IST India Infoline News Service

Combined index for Eight Core Industries came in at 117.6 in August 2020, resulting in a decline of 8.5% as compared to the same month last year. With the latest performance, the output has contracted for the sixth month straight now.

So far in the fiscal FY21 (April - August 2020), the output has cumulatively contracted 17.8%.

Here is the summary of the Index of Eight Core Industries as per the Ministry of Commerce & Industry data:

Coal (weight: 10.33%) - Production increased by 3.6% in August 2020 against last year same month. Its cumulative index declined by 10.2% during April to August 2020-21 over the corresponding period of the previous year.

Crude Oil (weight: 8.98%)  - Production contracted by 6.3% in August 2020 compared to August 2019. Cumulatively, the index declined by 6.1% during April to August 2020-21 over the corresponding period of the previous year.

Natural Gas (weight: 6.88%) - Production of this index dropped by 9.5% in August 2020 against August 2019. Cumulatively, the index declined by 13.7% during April to August 2020-21 over the corresponding period of the previous year.

Refinery Products (weight: 28.04%) - Production fell by 19.1% in August 2020 from the same month a year ago. Its cumulative index declined by 17.5% during April to August 2020-21 over the corresponding period of the previous year.

Fertilizers (weight: 2.63%) - Production rose by 7.3% in August 2020 over the same month of the previous year. Its cumulative index increased by 4.6% during April to August 2020-21 over the corresponding period of the previous year.

Steel (weight: 17.92%) - Production contracted by 6.3% in August 2020 over August 2019. Its cumulative index declined by 33.0% during April to August 2020-21 over the corresponding period of the previous year.

Cement (weight: 5.37%) - Production plunged by 14.6% in August 2020 over August 2019. Its cumulative index declined by 29.1% during April to August 2020-21 over the corresponding period of the previous year.

Electricity (weight: 19.85%) - The electricity generation dropped by 2.7% in August 2020 compared to a year ago the same month. Its cumulative index declined by 10.5% during April to August 2020-21 over the corresponding period of the previous year.

The centre has revised the final growth rate of the Eight Core Industries index to (-)21.4% for May 2020.

Eight Core Industries holds 40.27% of the weight of items included in the Index of Industrial Production (IIP).

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