Output of eight core industries declines by 5.8% in October 2019

Output of eight core infrastructure industries contracted by 5.8 per cent in October, indicating the severity of economic slowdown, according to government data.

Eight core industries posted marginal 0.2% growth in output for April-October 2019. As many as six of eight core industries saw a contraction in output in October.

The Eight Core Industries carrying 40.27% weight in the Index of Industrial Production (IIP) recorded 5.8% decline in the output for October 2019 over October 2018. Its cumulative output rose mere 0.2% in April-October 2019-20.

Coal production (weight: 10.33%) declined by 17.6% in October 2019 over October 2018. Its cumulative index declined by 5.8% during April to October 2019-20 over corresponding period of the previous year.

Crude Oil production (weight: 8.98%) declined by 5.1% in October 2019 over October 2018. Its cumulative index declined by 5.8% during April to October 2019-20over the corresponding period of previous year.

The Natural Gas production (weight: 6.88%) declined by 5.7% in October 2019 over October 2018. Its cumulative index declined by 2.6% during April to October 2019-20 over the corresponding period of previous year.

Petroleum Refinery production (weight: 28.04%) increased by 0.4% in October 2019 over October 2018. Its cumulative index declined by 1.7% during April to October 2019-20over the corresponding period of previous year.

The only sector that posted growth in October was fertilizers where production increased by 11.8 per cent year-on-year. Fertilizers production (weight: 2.63%) increased by 11.8% in October 2019 over October 2018. Its cumulative index increased by 2.6% during April to October 2019-20 over the corresponding period of previous year.

Steel production (weight: 17.92%) declined by 1.6% in October 2019 over October 2018. Its cumulative index increased by 6.7% during April to October 2019-20 over the corresponding period of previous year.

Cement production (weight: 5.37%) declined by 7.7% in October 2019 over October 2018. Its cumulative index declined by 0.6% during April to October 2019-20 over the corresponding period of previous year.

Electricity generation (weight: 19.85%) declined by 12.4%in October 2019 over October 2018. Its cumulative index increased by 1.5% during April to October 2019-20 over the corresponding period of previous year. Output of eight core infrastructure industries had contracted by 5.1 per cent in September, the lowest in the decade.

Shekhar Ghosh is consulting editor, Indoasiancommodities.com. He has edited and written for publications like Business India, Business Standard, Business Today, Outlook and many other international publications. He can be reached at shekhar.ghosh@indoasiancommodities.in.

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