Rare Silver Lining: India's Core Industries Growth At 11-Month High, Rises By 5.5 Percent In February

In what comes as a good news for the Modi government, India’s core industries grew at an 11-month high in the month of February registering a growth of 5.5 percent. The output pace in the core industries sector was 1.4 percent higher than January and 2.2 percent higher than that of the growth reported in February 2019. The core industries have maintained the growth trajectory for 8 months now after a brief 3-month slump earlier. The major drivers behind the growth of core industries have been the coal and electricity sector, which registered growth in double-digits.

According to the data released by Commerce and Industry Ministry on Tuesday, sectors like cement and fertilizers have also posted growth. But, crude oil, natural gas, and steel sectors witnessed a contraction in the output.

However, with country under complete lockdown and economic activities stand stalled to a major extent, a sharp decline in the core sector in the month of March appears inevitable.

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The eight core industries, which include coal, natural gas, crude oil, refinery products, fertilisers, steel, electricity and cement account for almost 40 percent of the weight of items included in the Index of Industrial Production (IIP).

Moreover, the electricity generation in the country rose by 11 percent in February and it registered a 1.8 hike in the cumulative index in comparison to the corresponding month of last year.

The coal production also saw a hike of 10.3 percent in February but its total growth went down by almost 1.2 percent, The Hindu BusinessLine reports.

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The petroleum refinery industry also maintained the growth trajectory with an increase of 7.4 percent in February 2020. The cumulative index of the sector grew by 0.3 percent in comparison to corresponding period of the last financial year.