ECONOMY

Core sectors grow by 16.8% in May on low-base effect; natural gas & steel output post huge expansion

The output of eight core sectors grew by 16.8 per cent in May, mainly due to a low-base effect and uptick in production of natural gas, refinery products, steel, cement and electricity, official data released on Wednesday showed. 


The eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity had contracted by 21.4 per cent in May 2020 due to the lockdown restrictions imposed to control the spread of the COVID-19 infections. 


In March this year, these key sectors had recorded growth of 11.4 per cent and 60.9 per cent in April 2021. 


According to the Commerce and Industry Ministry data, production of natural gas, refinery products, steel, cement and electricity jumped by 20.1 per cent, 15.3 per cent, 59.3 per cent, 7.9 per cent and 7.3 per cent in May as against (-) 16.8 per cent, (-) 21.3 per cent, (-) 40.4 per cent, (-) 21.4 per cent and (-) 14.8 per cent in May 2020 respectively. 


Coal output too rose by 6.9 per cent in May 2021 as against negative growth of 14 per cent in the same month of the previous year. Fertiliser and crude oil segments recorded negative growth during the month under review. 


During April-May of this financial year, the eight sectors grew by 35.8 per cent compared to negative growth of 29.4 per cent in the same period last year. 

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