Production in the eight core sectors declined by 4.6% in February, the strongest contraction in the past six months, which experts said could drag overall industrial output into negative territory in the month.
According to official data released on Wednesday, production declined in all major sectors, including coal, crude oil, natural gas and refinery products.
The growth rate of eight infrastructure sectors – coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity was 6.4% in February 2020.
The last time in August 2020, the regions registered negative growth of 6.9%. In January this year, the segment reported positive growth of 0.9%.
As per the data, coal production was down by 4.4%, crude oil by 3.2%, natural gas by 1%, refinery products by 10.9%, fertilizers by 3.7%, steel by 1.8%, cement by 5.5% and electricity by 0.2%. Has declined. % in February.
According to data from the Ministry of Commerce and Industry, during April-February 2020-21, growth of eight sectors declined by 8.3% as compared to (+) 1.3% in the same period of the previous fiscal year.
Modest growth
Commenting on the figures, ICRA Limited Principal Economist Aditi Nair said that given the sharp base effect, core sector production was expected to expand by 9–11% in March 2021, resulting in around 2% in Q4 FY2021 There should be a slight increase of. .
“Key indicators such as core sector, auto output and non-oil exports have revealed a definite mixed trend for February 2021. Based on the available data, we expect a contraction in the IIP [index of industrial production] To deepen from 1.6% in January 2021 to 2-3% in February 2021, ”she said.
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