Core sector output grows 5.8 pc in Feb

New Delhi, March 31 (FN Agency) Led by sectors such as refinery products, steel and electricity, core sector output grew 5.8% year-on-year in February, 2022. “The combined Index of Eight Core Industries stood at 137.1 in February 2022, which increased by 5.8% (provisional) as compared to the Index of February 2021,” said the Office of Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT). As per the official release, production of coal, natural gas, refinery products, steel, cement and electricity industries increased in February 2022 over the corresponding period of last year.

Production of crude oil and fertilizers declined in the month of February. The Eight Core Industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP). “With a pickup in growth of core sector output, higher daily average generation of GST e-way bills and continuing healthy performance of merchandise exports amidst a deeper contraction of auto production, we expect the IIP growth to print sub-2.5% in February 2022, lagging the core sector rise,” ICRA Chief Economist Aditi Nayar said. As per the official data, coal production increased by 6.6% in February, 2022 over February, 2021. Crude oil production declined by 2.2 per cent in February, 2022 over February, 2021. Natural Gas production increased by 12.5% year-on-year. While petroleum refinery production increased by 8.8% year-on-year in February, fertilizer production declined by 1.4%. Steel and cement production grew by 5.7% and 5% year-on-year respectively in February, 2022. Electricity generation increased by 4% in February, 2022 over February, 2021.