Index Of Eight Core Infrastructure Industries Witnessed Biggest Ever Fall
Fertilizer sector emerged as an exception while all the eight core infrastructure industries had a biggest-ever slump in recent years.
Photo Credit :
In its latest core sector report CARE ratings had observed slump by -5.8 per cent in the all the major eight core infrastructure industries of India. To make things worse is the finding of the lowest percentage growth since the Index had been constructed keeping 2011-12 as the base year.
Coal production contracted by (-) 17.6 per cent in October 2019 as against a positive growth of 11.3 per cent in the corresponding month a year ago. A high base effect coupled with the late withdrawal of monsoons weighed on the coal production.
Cement production, which is declining for the previous three months, contracted by (-) 7.7 per cent to a comprehensive 32 months low. Unfavourable base effect and prolonged monsoon weighed on the cement production during the month.
Steel production contracted to an almost four year low of (-) 1.6 per cent in October 2019 as against 2.4 per cent growth recorded in October 2018. This can be attributed to a slowdown in demand from the end-user industries owing to extended monsoon.
Electricity production registered a significant contraction of (-) 12.4 per cent which is the lowest growth seen since the index was formed with the base year 2011-12. High base effect coupled with lower commercial demand, the late withdrawal of monsoons and favourable weather conditions in October led to a decline in electricity generation.
Refinery Refiner production registered a positive growth of 0.4 per cent in October 2019, significantly better than (-) 6.6 per cent contraction a month ago and 1.3 per cent growth registered in October 2018.
Fertilizers Growth in the production of fertilisers was the exception among the core components having to register double-digit growth of 11.8 per cent in October 2019, its highest growth since April 2016. Replenishing activities ahead of the rabi sowing season and low base effect supported the fertilizer production.
Crude oil production continued to record negative growth for 23 consecutive months. The growth in crude oil production contracted by (-) 5.1 per cent in October 2019.
Natural gas contracted to a 3 year low of (-) 5.7 per cent in Oct 2019 as against 1 per cent contraction recorded in the corresponding month a year ago.