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Covid-19 impact: India's eight core sectors output contracts 23.4% in May

Infrastructure output, which comprises eight sectors including coal, crude oil and electricity and accounts for nearly 40% of the country's industrial output, contracted 30% in April and May

Topics
Core sectors | COVID-19 | Coronavirus

Press Trust of India  |  New Delhi 

Core sector output worst in 52 months; MPC may cut rates to prop up growth
During April-May 2020-21, the sectors output dipped by 30 per cent as compared to 4.5 per cent in the same period previous year.

The output of eight core industries shrank by 23.4 per cent in May due to the coronavirus-induced lockdown, according to the official data.

The eight had expanded by 3.8 per cent in May 2019, the data released by the Commerce and Industry Ministry on Tuesday showed.

Barring fertiliser, all seven sectors - coal, crude oil, natural gas, refinery products, steel, cement, and electricity - had recorded negative growth in May.

During April-May 2020-21, the sectors output dipped by 30 per cent as compared to 4.5 per cent in the same period previous year.

"In view of nationwide lockdown during April and May 2020 due to pandemic, various industries - Coal, Cement, Steel, Natural Gas, Refinery, Crude Oil etc experienced substantial loss of production," the ministry said in a statement.

These eight industries accounts for 40.27 per cent in the Index of Industrial Production (IIP).

First Published: Tue, June 30 2020. 17:32 IST
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