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MARCH 2020 CORE SECTOR OUTPUT SLUMPS 6.5%

Why in news?

The Output at India’s core sector contracted by 6.5% in March, Commerce Ministry data show, reflecting the early impact of the COVID-19 pandemic and the subsequent nationwide lockdown.

The index of eight core sector industries, which form 40% of the weight of items included in the broader Index of Industrial Production (IIP), reflected a contraction in key parts of the economy in March, according to the data released on 30th April 2020.

The Year on Year Gorwth of the production volume of the eight core industries of IIP

Details

Leading the contraction at the core industries were a 13% decline in steel output, and a 7% fall in electricity generation. The two sectors account for almost 40% of the index. Cement production crashed 25%, while natural gas production slid 15%, the data showed. Fertiliser production also fell 12%, while crude oil production slipped 5.5%.

Grim Future

These trends are expected to worsen slightly but within the same magnitude during April, noting that demand has fallen drastically in the power sector due to the full lockdown this month, and gas-powered plants were likely to have been shut down. Coal may also dip for April, while cement production will fall sharply as all construction activity came to a halt.

Read More about the Background information about IIP And Core Industries here: https://www.legacyias.com/pib-30th-april/

(2nd Article in PIB Summary)

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