July core sector output grows at 9.4% even as the low base effect wanes

The output of eight core sectors rose by 9.4%, in July on the back of low base seen in the corresponding month of 2021.

Seven out of the eight sectors have shown to have positive growth, in the wake of relieving restrictions post the second wave and reviving demand. Except the crude oil industry, all the others have shown an uptick YoY.

Cement industry showed a growth of 21.8 percent while the steel industry grew by a good 9.3 percent.

The core sector output grew 9.4% despite a waning base effect which shows that the economy is getting back to normalcy.

Index of Eight Core Industries for April 2021 is revised up to 62.6% from its provisional level 56.1%.

The growth rate of ICI during April-July 2021-22 was 21.2% (P) as compared to the corresponding period of last FY.

The GDP numbers for the first quarter of FY22 are awaited today which are to be released at 5:30pm. The data which will give an insight into how the second wave impacted the economy from April-June.

The core sector output comprises of the eight prime industries namely coal, crude oil, natural gas, refinery products, steel, cement, fertilizer and electricity. The output of these sectors altogether make up 40 percent of the Index of Industrial production (IIP).