Why Core Sector Output Fell for the First time in 42 months | InNews | Drishti IAS

Why Core Sector Output Fell for the First time in 42 months

Output levels in India’s core sectors slipped to a nine-month low in August, even as year-on-year growth slipped 1.8%, marking the first contraction in three and a half years. Six of eight infrastructure segments witnessed a year-on-year contraction in production, while fertilizers and steel output grew at a milder pace than July, when core sectors’ output rose 6.1%. In fact, the 4.5% uptick in steel production was the slowest in 26 months. In absolute terms, electricity generation was at a five-month low in August, while refinery products were at a six-month low. Coal and electricity output recorded their first contraction in at least 13 months, declining 8.1% and 5%, respectively, in August. Cement production fell 3%, the worst performance in nine months, while refinery products declined 1%, the second decline in three months. Fertilizer output grew 3.2%.

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