Core sector output expands by 18.1% in May 2022, highest in 13 months.

July 1, 2022

Eight core sectors are: Coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity.
Led by healthy growth in coal, crude oil, fertilisers, cement and electricity production, output of eight core industries grew to a 13-month high of 18.1 per cent in May this year, according to official data released.
The growth of core infrastructure sectors expanded by 16.4 per cent in the year-ago period and 9.3 per cent in April this year. The last high growth was recorded in April 2021 when it was 62.6 per cent.
In May, the output of coal, crude oil, refinery products, fertiliser, cement and electricity rose by 25.1 per cent, 4.6 per cent, 16.7 per cent, 22.8 per cent, 26.3 per cent and 22 per cent, respectively.
Growth rate in the production of natural gas and steel slowed down by 7 per cent and 15 per cent in the month under review as compared to 20.1 per cent and 55.2 per cent, respectively in May 2021.
Cumulatively, during April-May 2022-23, the output of these eight sectors declined to 13. 6 per cent as compared to 36.3 per cent during the same period of FY22.
It is expected that the IIP (Index of Industrial Production) or factory output to expand by 16-19 per cent in May 2022, benefitting from the high growth in the core sector as well as various other high frequency indicators.
The eight core industries account for 40.27 per cent of the IIP.