Infrastructure Output Of Core Sectors Rises 8.9% In June 2021

Infrastructure Output in June 2021: The growth in the infrastructure output last month was mostly led by the steel sector, followed by natural gas, and coal sectors.

Infrastructure Output Of Core Sectors Rises 8.9% In June 2021

June Infrastructure Output: The output of core sectors grew by 8.9 per cent

Infrastructure Output in June 2021: The output of the eight core infrastructure sectors rose to 8.9 per cent in June 2021, compared to the same month last year, government data showed on Friday, July 30. The infrastructure output witnessed a de-growth of 12.4 per cent in June 2020 when the pandemic-induced lockdown hit industrial activity across the country. The eight core industries consist of 40.27 per cent of the total weight of the items included in the industrial output or the Index of Industrial Production. (Also Read: Infrastructure Output Of Core Sectors Rises 16.8% In May 2021 )

The combined index of the eight core industries stood at 126.6 in June 2021, according to provisional data released by the Ministry of Commerce and Industry today. The growth in the infrastructure output last month was mostly led by the steel sector, followed by natural gas, and coal sectors. 

The infrastructure output - which comprises the eight core sectors such as electricity, coal, crude oil, among others, recorded a growth of 25.3 per cent in April-June period of the current fiscal, compared to a de-growth of 23.8 per cent in the corresponding period last year.

The production of steel, natural gas, and coal sectors increased by 25 per cent, 20.6 per cent, and 7.4 per cent respectively. The production of petroleum refinery products, fertilizers, cement, and electricity sectors also registered growth in June, increasing by 2.4 per cent, two per cent, 4.3 per cent, and 7.2 per cent, respectively, compared to the corresponding period last year.

Crude oil is the only sector that registered a de-growth in production last month at 1.8 per cent, according to Commerce Ministry data.

Aditi Nayar, Chief Economist, ICRA said that continued unlocking by the states, improved mobility, and higher electricity demand, pushed up in part by the lull in rainfall, are expected to boost the core sector growth to 11-14 per cent in July 2021.