Categories: Business

Core sector output contracts 23.4 percent in may

Photo: GOOGLE

core sector output

new Delhi. Due to the Kovid-19 epidemic and lockdown, production of eight basic industries was down 23.4 percent in May compared to a year ago. The government released its official figures on Tuesday. Production of basic industries increased by 3.8 percent in May last year. According to data from the Ministry of Commerce and Industry, production of all seven major sectors – coal, crude oil, natural gas, refinery products, steel, cement and power – declined in May, except fertilizer. In the first two months of April-May in the financial year 2020-21, the production of basic industries was 30 percent less than the previous year. Their production grew by 4.5 percent in the same period last year.

Fertilizer production has grown by 7.5 per cent during May due to continued agricultural operations amid lockdown and expectations of better monsoon. It was seen to decline in the last 2 months. While the decline in steel and cement sector continued in May, steel output declined by 48.4 percent during May, while the cement sector saw a decline of 22.2 percent.

The nationwide lockdown was in effect during April and May, according to the ministry's statement. Due to this, production of coal, cement, steel, natural gas, refinery products and crude oil has come down considerably. These eight basic industries account for 40.27 percent in the index of industrial production. The lockdown commenced in the last week of March due to Corona in the country. At the same time, restrictions have been relaxed. However, business activities are also battling to reach pre-epidemic levels due to viruses, supply chains and demand constraints.

This post was published on July 1, 2020 3:48 am

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