February 2022: Core Sector Growth at 4-month High

India’s core sector growth rose to a four-month high in February, boosted by a recovery in steel, electricity, and refinery products.

The index of eight core industries rose 5.8% in February compared with 4% in the month before and -3.3% in February last year The index measures the output of eight sectors — coal, steel, cement, fertiliser, electricity, natural gas, refinery products and crude oil.

The growth for April-February is 11% against 8.1% contraction in the previous fiscal. “The negative and low base effect has propped up production for all segments,” said Madan Sabnavis, chief economist at Bank of Baroda. Rating agency ICRA said the February growth was mildly higher than its expectation of 5.0%.

“Nevertheless, the continued contraction in crude oil and fertilisers, and sharp moderation in cement output growth cast a sobering note,” said Aditi Nayar, chief economist, ICRA

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