Core sector output rises 16.8% in May
The Hindu
Six out of the eight core sectors reported significant positive growth due to the base effects from May 2020
Output from India's eight core industries grew 16.8% in May 2021, with six sectors reporting significant positive growth due to the base effects from May 2020 when the country was in the middle of a national lockdown. However, the core sectors' overall output in May 2021 was a substantial 8% lower than the pre-Covid-19 level of May 2019, said ICRA chief economist Aditi Nayar, adding that growing State-level restrictions in the month has led to a month-on-month decline in electricity, cement, refinery products, steel, and crude oil output. “Even though construction activities were allowed amidst the States’ restrictions, the cement sector saw the largest sequential moderation in May 2021 as well as the deepest pace of contraction relative to May 2019 (15.2%). This may reflect the impact of the second wave on rural demand, as well as the year-on-year decline in the Government of India's capital outlay in May 2021,” noted Ms. Nayar.More Related News