India's Core Sector Output Grows 12.7% in June From a Year Ago

The production in India's eight core sectors, or infrastructure output expanded 12.7 per cent year-on-year in June, according to data released by the Ministry of Commerce & Industry on Friday.

Infrastructure output, which comprises eight sectors including coal and electricity and accounts for nearly 40 per cent of industrial output, rose 13.7 per cent cumulatively in April-June period, the data showed. The data showed that the production growth of eight infrastructure sectors -- coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity -- was 19.3 per cent in May 2022. Coal production, with a weightage of 10.33 per cent, rose by 31.1 per cent in June 2022 over June 2021, or year-over-year. Its cumulative index jumped by 31.2 per cent from April to June 2022-23 over the corresponding period of the previous year. Crude oil production, with a weightage of 8.98 per cent, declined by 1.7 per cent year-over-year in June 2022. Its cumulative index increased by 0.6 per cent from April to June 2022-23 over the corresponding period of the previous year. Natural gas production, with a weightage of 6.88 per cent, increased by 1.2 per cent in June 2022 from a year ago. Its cumulative index increased by 4.8 per cent from April to June 2022-23 over the corresponding period of the previous year. Petroleum Refinery production, with a weightage of 28.04 per cent, rose by 15.1 per cent in June 2022 over June 2021. Its cumulative index rose by 13.5 per cent from April to June 2022-23 over the corresponding period of the previous year. Fertilizer production, with a weightage of 2.63 per cent, increased by 8.2 per cent year-over-year in June 2022. Its cumulative index rose by 13.2 per cent from April to June 2022-23 over the corresponding period of the previous year. Steel production, with a weightage of 17.92 per cent, increased by 3.3 per cent in June 2022 from a year ago. Its cumulative index increased by 6.6 per cent from April to June 2022-23 over the corresponding period of the previous year. Cement production, with a weightage of 5.37 per cent, jumped by 19.4 per cent in June 2022 over June 2021. Its cumulative index rose by 17.1 per cent from April to June 2022-23 over the corresponding period of the previous year. Electricity generation, with a weightage of 19.85 per cent, rose by 15.5 per cent in June 2022 over June 2021. Its cumulative index increased by 16.8 per cent from April to June 2022-23 over the corresponding period of the previous year. Commenting on numbers, ICRA chief economist Aditi Nayar told PTI that coal, cement, refinery products and electricity generation demonstrated double digit growth in June, whereas the rise in steel and natural gas was quite muted. "In line with the moderation in the year on year performance recorded by most high frequency indicators as well as the core sector in June 2022, we expect the IIP (Index of industrial production) growth to ease to ~11-13 per cent  in that month," she said.