Eight major industries grew 56.1 per cent in April 2021 over the same period last year. The large increase in the growth rate is a result of the low annualized comparative annual basis and better performance of natural gas production, refinery products, steel and power sectors. The information was provided in official data released Monday.
Eight major industries – coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity – declined by 37.9 per cent in April 2020. This is due to locks being rolled out across the country to prevent the spread of coronavirus infection. The growth rate of the eight core industries was 11.4% in March this year. This high growth rate in April 2021 was largely due to a lower relative base effect in April 2020, the ministry said in a statement. Last year, a nationwide lockdown to control the outbreak of Kovid-19 caused a sharp decline in industrial production in all sectors.
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According to figures from the Ministry of Commerce and Industry, natural gas, refinery products, steel, cement and electricity grew by 25, 30.9, 400 percent, 548.8 and 38.7 percent, respectively, in April 2021 and April 2020 respectively: 19.9 percent, 24.2, 82.8. , 85.2 and 22.9 per cent, respectively.
Growth in the coal and fertilizer sector
The Coal and Fertilizers segment also recorded growth during the month under review, the statement said. However, crude oil output fell 2.1 per cent in April, down from 6.4 per cent in the previous month. ICRA chief economist Adit Nair said the growth rate of core industries was faster than expected due to a nationwide lockdown on less comparable terms. With the expected growth in cement and steel production, the recovery is quite broad, he said. However, the growth rate of both is lower than our estimates.
This is the result of a locally installed lockdown. We estimate that the Industrial Production Index (IIP) will increase by 130 to 150 per cent in April 2021, ”Nair said. After that, the ‘lockdown’ in May 2021 and other sanctions imposed in various states may soften some of it. The weight of these eight basic industries in IIP is 40.27 per cent.
