The combined output of eight core industries has surged 7.5 percent in October, compared to the same period last year, showing official data released on November 30.
Cumulative output, in addition to registering year-on-year growth, also marked sequential growth because the core industry grew 4.4 percent on September 2021.
“The combined index of eight core industries established at 136.2 in October 2021, which increased by 7.5 percent (temporary) compared to the October 2020 index,” the Ministry of Trade and Industry said in the official release.
“Coal production, natural gas, refinery, fertilizer, steel products, cement and electricity industry increased in October 2021 for the period in accordance last year,” he added.
The above industry, along with crude oil, is eight core industries. They consist of 40.27 percent of the weight of items included in the industrial production index (IIP).
The highest growth, in October, was recorded in natural gas production because it increased by 25.8 percent during the same period last year. The cumulative index increased by 22.6 percent during April-October 2021 for the period in accordance with the previous year.
Coal production jumped 14.6 percent compared to the same period last year, with a cumulative index increased by 12.2 percent during April-October 2021 compared to the same 2020 period.
Petroleum refine production increased by 14.4 percent in October, and the cumulative index increased by 11.7 percent during April-October 2021.
Among other core industries, cement production increased by 14.5 percent in October, electricity of 2.8 percent, fertilizer production grew slightly 0.04 percent and steel by 0.9 percent.
Crude oil is the only core industry that recorded negative growth last month, because the production fell 2.2 percent. The cumulative index also fell 2.8 percent during April-October 2021 compared to the same six-month period last year.
“In terms of YoY, the growth rate varies widely throughout the core sector, with cement, coal, natural gas and petroleum refinery products displaying two-digit expansion, while the increase in electricity, steel and fertilizer and sub-percent and crude oil output is contracted,” said Aditi Narggah, chief economist, ICRA.
“With the mixed trends displayed by most early indicators available for November 2021, we hope the growth of the core sector slips down 5% for this month,” added Nayarar.
In particular, official data released by the government also showed that the combined growth rate of eight core industries during April-October 2021 was 15.1 percent higher than the same period last year.
