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India’s eight core industries' output contracts 9.6% in July

Dilip Buildcon Ltd. | Construction - Real Estate | Construction & Infrastructure | BSE: 540047 | NSE: DBL

01 Sep 2020 Evaluate

The ministry of Commerce and Industry in its latest data has showed that the growth of eight core infrastructure industries have contracted by 9.6 percent in July 2020 as compared to same period of last year, due to decline mostly in production of steel, refinery products and cement. This is the fifth month of contraction in a row for the eight-core industries. The production of eight core sectors had expanded by 2.6 percent in July last year. The Eight Core Industries - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).

Among eight core sectors, Coal production having 10.33 percent weight decreased by 5.7 percent in July, 2020 over July, 2019, and its cumulative index fell by 12.9 percent during April to July, 2020-21 over corresponding period of the previous year. Petroleum Refinery production having 28.04 percent weight declined 13.9 percent in July, 2020 over July, 2019, while its cumulative index dropped by 17.1 percent during April to July, 2020-21 over the corresponding period of previous year.

Electricity generation having 19.85 percent weight fell 2.3 percent in July, 2020 over July, 2019, while its cumulative index decreased by 12.4 percent during April to July, 2020-21 over the corresponding period of previous year. Cement production having 5.37 percent weight decreased by 13.5 percent in July, 2020 over July, 2019 and its cumulative index fell by 32.2 percent during April to July, 2020-21 over the corresponding period of previous year. Steel production having 17.92 percent weight declined by 16.4 percent in July, 2020 over July, 2019, while its cumulative index fell by 42.0 percent during April to July, 2020-21 over the corresponding period of previous year.

Crude Oil production having 8.98 percent weight fell by 4.9 percent in July, 2020 over July, 2019 and its cumulative index dropped by 6.1 percent during April to July, 2020-21 over the corresponding period of previous year. The Natural Gas production having 6.88 percent weight declined by 10.2 percent in July, 2020 over July, 2019, and its cumulative index was down by 14.7 percent during April to July, 2020-21 over the corresponding period of previous year. However, Fertilizer production having 2.63 percent weight increased by 6.9 percent in July, 2020 over July, 2019, and its cumulative index was up by 3.9 percent during April to July, 2020-21 over the corresponding period of previous year.

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India’s eight core industries' output contracts 9.6% in July

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