New Delhi, Apr 28 (FN Agency) The combined output of India’s eight core industries dropped to five-month low of 3.6% year-on-year in March 2023 as against 7.2% in the previous month, data from Commerce Ministry showed on Friday. While output of coals, fertilizer, steel, natural gas and refinery products grew during this period, output of crude oil, cement and electricity declined. “The combined Index of Eight Core Industries (ICI) increased by 3.6 per cent (provisional) in March 2023 as compared to the Index of March 2022. The production of Coal, Fertilizers, Steel, Natural Gas and Refinery Products increased in March 2023 over the corresponding month of last year,” an official release said.
The index of eight core industries measures combined and individual performance of production of eight core industries viz. coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity. It comprises 40.27% of the weight of items included in the Index of Industrial Production (IIP). Commenting on core sector data, ICRA Chief Economist Aditi Nayar said, “The halving in the YoY core sector growth to a five month low of 3.6% in March 2023 from 7.2% in February 2023, was fairly broad-based, with only coal and crude oil displaying a sequential improvement.” She further said that dampened by a high base and heavy rainfall, the YoY performance of most of the available high frequency indicators weakened in March 2023, relative to February 2023, similar to the trend in the core sector.