Output growth in India’s eight core infrastructure sectors slowed to 3.3% in August 2022 from 4.5% in the previous month.
- This is the slowest pace seen since November 2021, with crude oil and natural gas continuing to report contractions while electricity and steel production clocked sharply lower expansions than in the previous month.
- Overall output levels in the eight sectors were 1.5% lower than in July 2022, marking the third successive month of sequential contraction.
- The core sector is an aggregate of 8 core sectors that are fundamental to the Indian economy.
- These are Coal, Crude oil, Natural gas, Refinery products, Fertilisers, Steel, Cement and Electricity.
- These 8 sectors constituting the core sector are important because they account for nearly 40.27% of the overall IIP and hence have long term repercussions for corporate profit growth as well as for the overall GDP growth.
- The growth of the country’s eight core sectors is a lead indicator of the monthly industrial performance.
- The Office of Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT) in the Commerce and Industry Ministry releases the Index of Eight Core Industries.
Source : The Hindu