The output of eight core sectors jumped by 56.1 per cent in April, fundamentally on a low base effect and gain in production of natural gas, refinery products, steel, cement and electricity, as per the official data released.
This high growth rate in April 2021 is largely due to low Index base in April 2020 consequent to the low industrial production across all sectors caused by nationwide lockdown imposed to contain spread of Covid last year, stated the Commerce Ministry. The eight infrastructure sectors had shrunk by 37.9 per cent in April 2020.
According to the data, output of natural gas, refinery products, steel, cement and electricity rose 25 per cent, 30.9 per cent, 400 per cent, 548.8 per cent and 38.7 per cent this April, as against (-) 19.9 per cent, (-) 24.2 per cent, (-) 82.8 per cent, (-) 85.2 per cent and (-) 22.9 per cent in April 2020, respectively.
Coal and fertilizer segments also saw positive growth. However, crude oil output descends by 2.1 per cent in April as against (-) 6.4 per cent in the same month last year.
Core infrastructure industries data is first set of information of FY22 with regional or localized lockdowns. April 2021 growth is high due to a weak base. However, this data suggests that while all states individually implemented lockdowns, these are not as strict as nationwide lockdowns of April and May 2020. All sectors except crude oil registered positive growth in April 2021 stated India Ratings & Research's Chief Economist Devendra Kumar Pant
Coal and fertilizer segments also saw positive growth. However, crude oil output descends by 2.1 per cent in April as against (-) 6.4 per cent in the same month last year.
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