Core sector output contracts 38% in April owing to stalled economic activity

Economy


The core sector output contracted by an unprecedented 38 per cent in April reflecting the impact that a lockdown has had on the economy.

The eight core sectors of the economy had contracted by 9 per cent in March.

The month of April, which was completely under lockdown, bore the maximum brunt of the crippling curb.

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This is the second consecutive contraction in the key economic indicator that reflects the health of eight key infrastructure sectors of the economy.

The sector was dragged by broad-based contraction seen in all the eight industries. The numbers show that the index of industrial production could slip further from its 16 per cent contraction seen in March. Core sector output forms 40 per cent of the IIP.

Cement and Steel output declined by a massive 86 per cent and 83 per cent respectively in April.

Here’s a sectoral break-up:

  1. Coal sector output down 15.5% YoY
  2. Cement sector output down 86% YoY
  3. Steel sector output down 83.9% YoY
  4. Fertiliser output falls 4.5% YoY
  5. Crude oil output falls 6.4% YoY
  6. Natural gas output falls 19.9% YoY



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