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Home >News >India >India's core sector output in June grows 8.9% year-on-year: Govt

The output of eight core sectors grew by 8.9% in June, compared with 16.8% in the previous month, as the high base effect of 2020 began to fizzle out, the official data released by the industry department on Friday showed.

India's infrastructure output, which comprises eight sectors including coal, crude oil and electricity and accounts for nearly 40% of industrial output, rose by 25.3% on year in the first quarter of the fiscal year beginning in April, the data showed.

Refinery output and steel production eased from double digit growth last month while fertilizer production turned positive. Positive growth was seen in seven out of eight sectors with crude oil output continuing to remain in negative territory.

According to the commerce and industry ministry data, production of coal, natural gas, refinery products, steel, cement and electricity jumped by 7.4%, 20.6%, 2.4%, 25%, 4.3% and 7.2%, respectively, in June 2021, as against (-) 15.5%, (-) 12%, (-) 8.9%, (-) 23.2%, (-) 6.8% and (-) 10% in the same month last year.

Crude oil output contracted by 1.8% during the month under review as against a negative growth of 6% in June last y.

Infrastructure growth for March was revised to 12.6% from an earlier estimate of 6.8%.

The International Monetary Fund (IMF) has sharply scaled down India's economic growth projection by 300 basis points to 9.5% for the current fiscal from 12.5% estimated earlier in April.

IMF said the downward revision is due to the "lack of access to vaccines", a possibility of renewed waves of Covid-19 and slow recovery in consumer confidence.

“Growth prospects in India have been downgraded following the severe second Covid wave during March-May and expected slow recovery in confidence from that setback," IMF said in the latest edition of its flagship World Economic Outlook (WEO) report, released on Tuesday.

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