The contraction in India's eight major industries widened in October on a sequential basis, as the output pace receded by -2.5 percent.
Alarmingly, the rate of contraction in October was faster than that of -0.1 per cent registered in September.
Though not comparable, on a year-on-year basis, the growth rate stood at -5.5 per cent in October 2019.
The eight core industries include coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity. The Index of Eight Core Industries comprises over 40 percent of the weight of items included in the Index of Industrial Production (IIP).
“The combined Index of Eight Core Industries stood at 124.2 in October, 2020, which declined by 2.5 (provisional) percent as compared to the index of October, 2019. Its cumulative growth during April to October, 2020-21 has been -13 percent,” said the Office of Economic Advisor, DPIIT, on the Index of Eight Core Industries for October 2020.
“Final growth rate of Index of Eight Core Industries for July 2020 is revised to -7.6 percent,” he added.
The contraction in output came largely on account of fall in production by oil and gas and refinery products while other energy segments like coal and electricity performed relatively well clocking positive growth in October.
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)