Output of eight core sectors expanded by 6.8 per cent in March – the highest in 32 months – driven by a base effect-led uptick in production of natural gas, steel, cement and electricity, official data showed on Friday. The growth rate of the eight infrastructure sectors – coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity – was recorded at (-) 8.6 per cent in March last year. 

According to the data released by the Commerce and Industry Ministry on Friday, production of natural gas, steel, cement and electricity jumped by 12.3, 23, 32.5 and 21.6 per cent this March as against (-) 15.1, (-) 21.9, (-) 25.1 and (-) 8.2 per cent in March 2020 respectively. Coal, crude oil, refinery products and fertiliser segments, meanwhile, recorded negative growth during the month under review. 

During the full financial year of 2020-21 (April-March), production of the eight sectors contracted by 7 per cent as against positive growth of 0.4 per cent in 2019-20. Commenting on the numbers, ICRA Chief Economist Aditi Nayar said that the 6.8 per cent growth in March, a “32-month high”, was due to the base effect. 

The low base of the lockdown-affected April 2020 would push up the year-on-year expansion of the index of eight core industries to a sharp 50-70 per cent in April 2021, with exceptionally high growth expected in cement and steel, she further added.