Govt reveals core sector growth rates
ECONOMY & POLICY

Govt reveals core sector growth rates

After a steep decline in March and April 2020, the overall growth rate of production of eight core industries started showing signs of recovery since May 2020. In a written reply on Wednesday in the Lok Sabha, the lower house of the Parliament, Som Parkash, Minister of State for Commerce and Industry, shared sector-wise and month-wise details of growth rate in the eight core industries since November 2019.

 

The production of eight core industries has been adversely affected by the Covid-19 pandemic and associated disruptions in demand and supply of goods and services.  Some of the demand side factors responsible for drop in production are decline in private final consumption expenditure and gross fixed capital expenditure, uncertainty in business sentiments, etc. The imposition of nationwide lockdown to contain the outbreak of Covid-19 pandemic was a major supply side factor responsible for drop in the core sector growth.

 

Some of the steps taken by the Government to ensure growth in core sector and to promote domestic industry are as follows:

 

·         Government is promoting Public Procurement, National Infrastructure Pipeline and Production Linked Incentive Schemes to boost domestic production.

·         Government has also announced Aatmanirbhar Package of Rs 29.87 trillion (15% of GDP) with bold reforms in number of sectors.

·         Announcement of structural reforms such as deregulation of the agricultural sector, change in definition of MSMEs, commercialisation of coal mining, higher FDI limits in defence and space sector, development of Industrial Land or Land Bank and Industrial Information System, revamp of Viability Gap Funding scheme for social infrastructure, new power tariff policy.

·         Incentivising States to undertake sector reforms as part of the Aatmanirbhar Package.

·         Regulatory and compliance measures such as postponing tax-filing and other compliance deadlines, reduction in penalty interest rate for overdue GST filings, change in government procurement rules, faster clearing of MSME dues, IBC related relaxations for MSMEs have been taken to boost the industry.

 

To facilitate investment in the country, Empowered Group of Secretaries (EGoS) and Project Development Cells (PDCs) have been set up in Ministries or Departments.

 

To contain surge in imports of non-essential commodities, corrective steps such as increase in basic customs duty or through other non-tariff measures like issue of Quality Control Orders have been taken. One District One Product Scheme has also been launched to realise the true potential of a district.

 


Growth rate (in %) of production of eight core industries (year-on-year)

Months and Years

Overall Growth rate

Coal

Crude Oil

Natural Gas

Petroleum Refinery Products 

Fertilizers 

Steel

Cement

Electricity 

Weight (%)

 

10.33

8.98

6.88

28.04

2.63

17.92

5.37

19.85

November, 2019

0.7

-3.5

-6.0

-6.4

3.1

13.6

7.0

4.3

-4.9

December, 2019

3.1

6.1

-7.4

-9.2

3.0

10.2

8.7

5.5

0.0

January, 2020

2.2

8.0

-5.3

-9.0

1.9

-0.1

1.6

5.1

3.2

February, 2020

6.4

11.3

-6.4

-9.6

7.4

2.9

2.9

7.8

11.5

March, 2020

-8.6

4.0

-5.5

-15.1

-0.5

-11.9

-21.9

-25.1

-8.2

April, 2020

-37.9

-15.5

-6.4

-19.9

-24.2

-4.5

-82.8

-85.2

-22.9

May, 2020

-21.4

-14.0

-7.1

-16.8

-21.3

7.5

-40.4

-21.4

-14.8

June, 2020

-12.4

-15.5

-6.0

-12.0

-8.9

4.2

-23.2

-6.8

-10.0

July, 2020

-7.6

-5.7

-4.9

-10.2

-13.9

6.9

-6.5

-13.5

-2.4

August, 2020

-6.9

3.6

-6.3

-9.5

-19.1

7.3

0.5

-14.5

-1.8

September, 2020

0.6

21.0

-6.0

-10.6

-9.5

-0.3

6.2

-3.4

4.8

October, 2020*

-0.9

11.7

-6.2

-8.6

-17.0

6.3

4.0

3.2

11.2

November, 2020*

-1.4

3.3

-4.9

-9.3

-4.8

1.6

-0.5

-7.3

3.5

December, 2020*

-1.3

2.2

-3.6

-7.2

-2.8

-2.9

-2.7

-9.7

4.2

2016-17 (April-March)

4.8

3.2

-2.5

-1.0

4.9

0.2

10.7

-1.2

5.8

2017-18 (April-March)

4.3

2.6

-0.9

2.9

4.6

0.03

5.6

6.3

5.3

2018-19 (April-March)

4.4

7.4

-4.1

0.8

3.1

0.3

5.1

13.3

5.2

2019-20 (April-March)

0.4

-0.4

-5.9

-5.6

0.2

2.7

3.4

-0.9

0.9

2020-21 (April-March)*

-10.1

-1.9

-5.7

-11.6

-13.5

3.0

-16.7

-18.3

-3.7

Image Source


Written from a government news release.

 

After a steep decline in March and April 2020, the overall growth rate of production of eight core industries started showing signs of recovery since May 2020. In a written reply on Wednesday in the Lok Sabha, the lower house of the Parliament, Som Parkash, Minister of State for Commerce and Industry, shared sector-wise and month-wise details of growth rate in the eight core industries since November 2019.   The production of eight core industries has been adversely affected by the Covid-19 pandemic and associated disruptions in demand and supply of goods and services.  Some of the demand side factors responsible for drop in production are decline in private final consumption expenditure and gross fixed capital expenditure, uncertainty in business sentiments, etc. The imposition of nationwide lockdown to contain the outbreak of Covid-19 pandemic was a major supply side factor responsible for drop in the core sector growth.   Some of the steps taken by the Government to ensure growth in core sector and to promote domestic industry are as follows:   ·         Government is promoting Public Procurement, National Infrastructure Pipeline and Production Linked Incentive Schemes to boost domestic production. ·         Government has also announced Aatmanirbhar Package of Rs 29.87 trillion (15% of GDP) with bold reforms in number of sectors. ·         Announcement of structural reforms such as deregulation of the agricultural sector, change in definition of MSMEs, commercialisation of coal mining, higher FDI limits in defence and space sector, development of Industrial Land or Land Bank and Industrial Information System, revamp of Viability Gap Funding scheme for social infrastructure, new power tariff policy. ·         Incentivising States to undertake sector reforms as part of the Aatmanirbhar Package. ·         Regulatory and compliance measures such as postponing tax-filing and other compliance deadlines, reduction in penalty interest rate for overdue GST filings, change in government procurement rules, faster clearing of MSME dues, IBC related relaxations for MSMEs have been taken to boost the industry.   To facilitate investment in the country, Empowered Group of Secretaries (EGoS) and Project Development Cells (PDCs) have been set up in Ministries or Departments.   To contain surge in imports of non-essential commodities, corrective steps such as increase in basic customs duty or through other non-tariff measures like issue of Quality Control Orders have been taken. One District One Product Scheme has also been launched to realise the true potential of a district.   Growth rate (in %) of production of eight core industries (year-on-year) Months and Years Overall Growth rate Coal Crude Oil Natural Gas Petroleum Refinery Products  Fertilizers  Steel Cement Electricity  Weight (%)   10.33 8.98 6.88 28.04 2.63 17.92 5.37 19.85 November, 2019 0.7 -3.5 -6.0 -6.4 3.1 13.6 7.0 4.3 -4.9 December, 2019 3.1 6.1 -7.4 -9.2 3.0 10.2 8.7 5.5 0.0 January, 2020 2.2 8.0 -5.3 -9.0 1.9 -0.1 1.6 5.1 3.2 February, 2020 6.4 11.3 -6.4 -9.6 7.4 2.9 2.9 7.8 11.5 March, 2020 -8.6 4.0 -5.5 -15.1 -0.5 -11.9 -21.9 -25.1 -8.2 April, 2020 -37.9 -15.5 -6.4 -19.9 -24.2 -4.5 -82.8 -85.2 -22.9 May, 2020 -21.4 -14.0 -7.1 -16.8 -21.3 7.5 -40.4 -21.4 -14.8 June, 2020 -12.4 -15.5 -6.0 -12.0 -8.9 4.2 -23.2 -6.8 -10.0 July, 2020 -7.6 -5.7 -4.9 -10.2 -13.9 6.9 -6.5 -13.5 -2.4 August, 2020 -6.9 3.6 -6.3 -9.5 -19.1 7.3 0.5 -14.5 -1.8 September, 2020 0.6 21.0 -6.0 -10.6 -9.5 -0.3 6.2 -3.4 4.8 October, 2020* -0.9 11.7 -6.2 -8.6 -17.0 6.3 4.0 3.2 11.2 November, 2020* -1.4 3.3 -4.9 -9.3 -4.8 1.6 -0.5 -7.3 3.5 December, 2020* -1.3 2.2 -3.6 -7.2 -2.8 -2.9 -2.7 -9.7 4.2 2016-17 (April-March) 4.8 3.2 -2.5 -1.0 4.9 0.2 10.7 -1.2 5.8 2017-18 (April-March) 4.3 2.6 -0.9 2.9 4.6 0.03 5.6 6.3 5.3 2018-19 (April-March) 4.4 7.4 -4.1 0.8 3.1 0.3 5.1 13.3 5.2 2019-20 (April-March) 0.4 -0.4 -5.9 -5.6 0.2 2.7 3.4 -0.9 0.9 2020-21 (April-March)* -10.1 -1.9 -5.7 -11.6 -13.5 3.0 -16.7 -18.3 -3.7 Image SourceWritten from a government news release.  

Next Story
Infrastructure Urban

InsideFPV Delivers ₹10 Crore Kamikaze Drone Order Under MoD’s EPR Route

InsideFPV, a Surat-based drone technology manufacturer, has successfully executed a ₹10 crore defence contract to supply indigenous kamikaze drones under the Ministry of Defence’s Emergency Procurement Route (EPR). The company completed the delivery of hundreds of FPV kamikaze drone platforms within a rapid two-month timeframe, highlighting its ability to meet urgent military procurement timelines.The supply orders were fulfilled under the emergency procurement mechanism, which is aimed at fast-tracking acquisitions for immediate operational needs. InsideFPV’s quick execution reflects it..

Next Story
Infrastructure Energy

Vedanta Resources Secures Fitch Upgrade to ‘BB-’, Best Rating Since 2015

Vedanta Resources Limited (VRL), a global player in metals, oil & gas, critical minerals, power and technology, has received a credit rating upgrade from Fitch Ratings, marking its strongest bond rating in over a decade.Fitch has raised Vedanta Resources’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BB-’ from ‘B+’, while maintaining a Stable Outlook. The agency also upgraded VRL’s senior unsecured rating, along with the ratings of US dollar-denominated bonds issued by Vedanta Resources Finance II Plc and guaranteed by VRL, to ‘BB-’.The upgrade represents Vedan..

Next Story
Real Estate

NAREDCO NextGen NCR Chapter Launched

The NAREDCO NextGen NCR Chapter was recently launched at Excelerate 2026 in Mumbai, marking a key step towards integrating emerging real estate leaders from the National Capital Region with the national platform. The initiative aims to promote sustainable and responsible urban development through collaboration and knowledge exchange.The event brought together young developers, entrepreneurs, and professionals from across NCR, including Noida, Gurugram, Ghaziabad, Faridabad, Bhiwadi, and Meerut. Discussions focused on urban development, finance, sustainability, innovation, and policy, emphasisi..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement