Growth crashes in 8 core sectors by 38%

The country’s eight core sectors crashed over 38 per cent in April, with cement and steel output hit the hardest, seeing a massive decline of 86 per cent and 83 per cent respectively, government data released on Friday showed.

As the core sectors are considered a key indicator of the health of eight key infrastructure segments, the April core growth fall is the second consecutive contraction. The eight core sectors had contracted by 6.5 per cent in March.

As manufacturing halted completely in India from late March, when a nationwide lockdown was imposed, the core growth in May is likely to be worse than April. As core sector output is around 40 per cent of the IIP, this indicates the IIP could slip further from its 16 per cent contraction in March.

Growth in the eight core sectors crashed by over 38 per cent in the lockdownwasted month of April, official data released on Friday showed. Among all the sectors, cement and steel output were hit the hardest, which witnessed a massive decline of 86 per cent and 83 per cent, respectively.

The core sector, considered a key economic indicator of the health of the key infrastructure segments of the economy, witnessed contraction for the second consecutive month in April. The eight sectors had contracted by 6.5 per cent in March.

As the core sector output constitues around 40 per cent of the industrial output, the Index of Industrial Production could slip further from its 16 per cent contraction seen in March.

Cement was the worst performer with growth contracting 86 per cent versus a 25.1 per cent contraction in March, while steel output was badly affected by 83.9 per cent compared to a 24.1 per cent contraction in March.