1.3.20

January 2020: Core Sector Grows for 2nd Straight Month

India’s core sector expanded 2.2% in January, a mild increase from 2.1% in December.

The eight infrastructure industries grew 1.5% in January last year. Economic Affairs Secretary Atanu Chakraborty said growth in core sector industries during December and January “augurs well” for the manufacturing sector in the January-March quarter of the ongoing fiscal year.

The government also revised upward core sector growth in December to 2.1% from 1.3% earlier due to revisions in the output of coal, steel and electricity.

The eight core industries comprise 40.27% of the Index of Industrial Production. The growth was aided by increased output in five out of eight industries — coal, refineries, steel, cement and electricity.

Factory output contracted 0.3% in December. The statistics office will release the IIP data for January on March 12.

Coal production touched a 10-month high of 8%. Electricity generation was up 2.8% in January.

In the April-January period, core industries growth slowed down to 0.6% against 4.4% in the year ago period.

Output of crude oil, natural gas, and fertiliser contracted 5.3%, 9.1% and 0.1%, respectively in January.

Refinery products, which have the highest weightage in the eight core industries, grew 1.9% in January, as against a contraction of 2.6% in the comparable month last year.

The govt also revised upward core sector growth in December to 2.1% from 1.3% earlier due to revisions in the output coal, steel etc

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