As per an official data released by the Ministry of Commerce and Industry on Friday, the output of eight core industries increased by 8.9 per cent in June against 16.8 per cent in the previous month due to a constant low-base effect.
When combined, the industries of coal, crude oil, natural gas, refinery products, steel, cement, fertilizer and electricity have a weight of over 40 per cent in the Index of Industrial Production (IIP). Of these core sectors, the production of only crude oil had declined. It has been declining for more than 15 months now.
In the month of June, finished steel production increased the most by 25 per cent following a rise of 55 per cent in April. The production of cement jumped by a smaller margin of 4.3 per cent, lower than May’s 8.3 per cent.
While the electricity industry had grown by 21.1 per cent, 38.5 per cent and 7.5 per cent in March, April and May respectively, it was reported to rise by 7.2 per cent in the month of June. Natural Gas production soared by 20.6 per cent.
On Tuesday, the International Monetary Fund (IMF) stated in the latest edition of World Economic Outlook’s (WEO) report, “Growth prospects in India have been downgraded following the severe second COVID wave during March-May and expected slow recovery in confidence from the setback.”
The IMF has also blamed the lack of accessibility to vaccines for the downward version.