Core Sector Output Shrinks 6.5 Per cent Amid Covid-19 Outbreak

The output of eight core infrastructure industries shrank by a record 6.5 per cent in March due to significant dip in production of crude oil, natural gas, fertiliser, steel, cement and electricity amid the coronavirus lockdown.

The eight core sectors had expanded by 5.8 per cent in March 2019. In February this year, the sectors recorded a growth of 7 per cent.

Production of crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity contracted by 5.5 per cent, 15.2 per cent, 0.5 per cent, 11.9 per cent, 13 per cent, 24.7 per cent and 7.2 per cent, respectively, in the month under review, according to data of the commerce and industry ministry released on Thursday.

The growth rate of coal production declined to 4.1 per cent in March from 9.1 per cent in the same month of 2019.

During April-March 2019-20, core industries recorded 0.6 per cent growth against 4.4 per cent in 2018-19.

The record contraction in the growth rate of eight core sectors will have its impact on Index of Industrial Production (IIP). These sectors account for about 40.27 per cent in the IIP.While the March output has shrank significantly for the month of April, the numbers are expected to be even worse given the total lockdown in the country. In fact, it is almost certainly going to be significantly lower for the previous month,