India's core industries output sees marginal 0.1% rise in January

The core sector index, which measures output of eight infrastructure industries, rose marginally by 0.1 per cent in January, indicating a wobbly recovery from the pandemic shock. Output in five of the eight crucial sectors fell on an year-on-year (YoY) basis, according to data released by the Ministry for Commerce and Industry.

Growth in core sector output in January was lower than the 0.2 percent expansion seen in December. In fact, the number for December was revised upwards from a 0.3 percent contraction estimated earlier. This index has a 40.27 per cent weighting in the Index of Industrial Production (IIP) and captures output in eight infrastructure industries — coal, electricity, crude oil, natural gas, steel, cement, fertilizers, and refinery products. Based on the available data for the core sector, merchandise exports and auto output, the projected growth in IIP is to remain subdued at 0.5-1.5 percent in January 2021.

The core sector index benefitted from the performances of fertilizer, steel, and electricity sectors, which posted an expansion in output of 2.7 percent, 2.6 percent, and 5.1 percent, respectively. However, output contracted in the coal sector by 1.8 per cent, crude oil by 4.6 per cent, natural gas by 2 percent, refinery products by 2.6 percent, and cement by 5.9 percent.

Source: Business Standard