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Eight Core Industries' Output Inches Up In June

The index of eight core industries rose 1.1% in June over the preceding month.

<div class="paragraphs"><p>Bundles of cables during the manufacturing of parts for the Detect Technologies Ltd.  Photographer: Dhiraj Singh/Bloomberg</p></div>
Bundles of cables during the manufacturing of parts for the Detect Technologies Ltd. Photographer: Dhiraj Singh/Bloomberg

Eight core infrastructure industries saw a modest recovery in June after a decline in the preceding month as localised restrictions eased across states.

The index of eight core industries rose 1.1% in June over the previous month, according to data released by the government on Friday. The index had contracted 4.2% month-on-month in May.

Compared to a year ago, output across these industries was higher by 8.9% in June compared to 16.3% in May, the data showed.

"As expected, the waning of the favourable base effect outweighed the impact of the lifting of state restrictions, causing the core sector growth to halve to 8.9% in June 2021 from 16.3% in May," Aditi Nayar, chief economist at ICRA, said.

Coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity count among the core sectors, comprising 40% of the Index of Industrial Production.

Break-Up Across Eight Core Sectors (Month-On-Month)

  • Coal output contracted 4.3% in June.

  • Crude oil output rose 1.8%.

  • Natural gas output increased 2%.

  • Refinery products declined 3.8%.

  • Fertiliser production inched up 14%.

  • Steel output firmed up 2.1%.

  • Cement output rose 13.1%.

  • Electricity output fell 4%.