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Eight core sectors’ output rises by 11.6% in August

By Priyanka Verma 
Updated Date
Eight core sectors’ output rises by 11.6% in August

NEW DELHI : Output of eight core infrastructure industries expanded 11.6% annually in August, although on a low base, showing continued recovery in economic activities. Core sector output has been witnessing year-on-year growth after recovering from a contraction in February.

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Output of coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity make up for two-fifth of the weight of the items included in the Index of Industrial Production (IIP).

Data released by the office of the economic adviser in the ministry of commerce and industry showed that barring crude oil and fertilizer sectors, all other sectors reported growth in output.

Data for core sector growth has been revised to 16.4% from the provisional level of 16.8%. In the April-August period of FY22, core sector witnessed a 19.3% expansion compared to the year-ago period.

While output of coal and natural gas jumped 20.6% each in August from the year-ago period, refinery products saw a 9.1% jump. Steel, cement and electricity output improved by 5.1%, 36.3% and 15.3% in August, data showed.

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The pickup in the year-on-year core sector growth to 11.6% in August 2021 from 9.9% in July, benefited from the lull in rains, which supported the growth in coal, cement and electricity, as well as higher mobility that propped up the growth in petroleum refinery products.

“Core output displayed a heartening 3.9% rise in August 2021 relative to the pre-covid period of August 2019, led by all the sub-sectors except refinery products and crude oil,” said Aditi Nayar, chief economist at rating agency ICRA Ltd.

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