Core sector output expands 11.6% in August

Core sector output expanded by 11.6 per cent in August compared to 9.9 per cent in July.

The growth was led by sectors like Coal, Natural Gas, Refinery Products, Steel, Cement and Electricity.

Cement production expanded the most among all industries at 36.3 per cent in August, 2021 over August, 2020. Electricity generation witnessed growth of 15.3% in August.


The Eight Core Industries comprise 40.27 percent of the weight of items included in the Index of Industrial Production (IIP).

"Although core sector growth has improved, the weaker trends in auto production are likely to weigh upon the manufacturing output in August 2021, resulting in an IIP growth of around 11-12%, similar to the July 2021 print," said Aditi Nayar, Chief Economist, ICRA.

The gradual pick up in economic activity will fuel the growth in core industrial activity in coming months. Pent up demand along with festive push is expected to drive the growth as the economy emerges from the impact of the second wave.

Forecasts have also improved as ICRA lifted its annual economic growth target to 9% from 8.5% earlier.