India’s eight core industries’ June production up around 9%

Low base effect, along with easing of Covid 2.0 restrictions, boosted output of India’s eight major industries during June 2021, on a year-on-year basis.

The Index of Eight Core Industries’ (ICI) reading for last month showed an expansion of 8.9 per cent from a decline of 12.4 per cent in output during the same month of the last year.

Last year, the pandemic-triggered national lockdown (from late March 2020) during Q1FY21 had a massive impact on the economy, and it was only on June 1, 2020, that the partial unlock measures were implemented.

Unlike last year, the lockdown in 2021 was more regional in nature, and production and manufacturing by several industries were allowed this time around.

“The combined Index of Eight Core Industries stood at 126.6 in June 2021, which increased by 8.9 per cent (provisional) as compared to the Index of June 2020,” the Ministry of Commerce & Industry said in a statement.

“The production of coal, natural gas, refinery products, fertilisers, steel, cement and electricity industries increased in June 2021 over the corresponding period of last year.”

Besides, the ministry revised the final growth rate of Index of Eight Core Industries for March 2021 to 12.6 per cent from its provisional level of 6.8 per cent.

“The growth rate of ICI during April-June 2021-22 was 25.3 per cent (P) as compared to the corresponding period of last FY.”