Output of core industries declined by 15% in June

by Yash Shah

The index of eight core industries declined by 15 per cent on a y-o-y basis in June 2020. This is the fourth consecutive month of decline. It comes after 22 per cent decline recorded in May 2020. The impact of the lockdown introduced to fight COVID-19 was felt across seven industries in May 2020 and June 2020, compared to decline in output of all eight core industries in April 2020.

Production of fertilisers grew for the second consecutive month in June 2020.

During June 2020, all other core industries recorded a y-o-y fall in output. Except for coal, the extent of contraction narrowed for crude oil, natural gas, refinery products, steel, cement and electricity sectors.

Coal output declined by 15.5 per cent in June. Output of steel industries fell by more than 30 per cent during the month. Generation of electricity declined by 11 per cent. Production of cement fell by 6.9 per cent in June 2020.

Output of eight core industries for the cumulative period of April 2020-June 2020 fell by 24.6 per cent compared to 3.4 per cent growth recorded during the corresponding period in the previous year.

Index of Eight Core Industries (Y-o-Y % Change)
  June 2020 Apr - Jun 2020
Overall Index -15.0 -24.6
 Coal -15.5 -15.0
 Crude oil -6.0 -6.5
 Natural gas -12.0 -16.2
 Refinery products -8.9 -18.2
 Fertilisers 4.2 2.8
 Steel -33.8 -51.7
 Cement -6.9 -38.3
 Electricity -11.0 -16.1

References
1. https://www.pib.gov.in/PressReleasePage.aspx?PRID=1642586