Production in eight major sectors hits a four-month high of 5.8%

05 Apr 2022 CW Team

In February, the low base effect and strong performance in the steel, cement, coal, natural gas, refinery products, and power segments saw production in eight major core sectors rise to a four-month high.

According to the Department for Promotion of Industry and Internal Trade (DPIIT) report, the eight infrastructure sectors, including coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity, rose an annual 5.8% in February, compared to 4% in January and a contraction of 3.3% the last month.

The only industries that saw a decrease were oil and fertilisers.

The eight-core sectors account for 40.1% of the total weight of items in the industrial production index (IIP). The IIP data will be available later this month.

With the government's infrastructural drive and an increase in the construction industry, steel and cement have expanded by 5.7% and 5%, respectively.

As per Madan Sabnavis, chief economist at Bank of Baroda, the growth was 12.6% the previous year. So, the March estimate might be negative. IIP growth for February is likely to be about 3%.

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