Thumbnail- Eight core industries output grows by 56.1% in April
India’s Aatmanirbhar growth in Eight core industries output
Youtube- India’s Eight Core Industries Output Grows by 56.1% in April 2021
According to official data released by the Ministry of Commerce & Industry, the production in the eight core sectors increased by 56.1%.
It increased mainly due to lower base effects and increased production of natural gas, refined products, steel, cement, and electricity.
The selected eight core industries are – Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity.
The combined ICI stood at 126.7 in April 2021, which increased by 56.1% as compared to the Index of April 2020. In March 2021, the eight sectors had recorded a growth rate of 11.4 %.
The major reason for the high growth rate in April 2021 was largely due to the low industrial production across all sectors caused by the nationwide lockdown imposed to curb the spread of COVID-19 last year.
Coal and fertilizer segments too recorded positive growth. Growth in April 2021 was also driven by a massive jump in steel and cement output. Steel and cement output grew 400 % and 548.8 %, respectively, as it plunged last year with industry activity coming to a near-halt. Also, the production of natural gas, refinery products, and electricity jumped by 25%, 30.9%, and 38.7% in April 2021.
This comes as a major boost to the economy as the country is grappling with the second wave of COVID-19. Also, to boost domestic manufacturing, industrial production, and GDP growth, Govt has announced the Production-Linked Incentive (PLI) Scheme in 13 key sectors, under AatmaNirbhar Bharat for enhancing India’s manufacturing capabilities and exports.
These eight core industries account for 40.27 % of the weight of items included in the Index of Industrial Production (IIP).
Let’s know what is Index of Industrial Production?
Index of Industrial Production is an index that tracks manufacturing activity in different sectors of an economy. It is a key economic indicator of the manufacturing sector of the economy.
Who uses IIP data?
The data could be used by various government agencies such as the Ministry of Finance, Reserve Bank of India (RBI), private firms among others. The data is also used to compile the Gross Value Added (GVA) of the manufacturing sector in the Gross Domestic Product (GDP) on a quarterly basis. It is calculated and published by the Central Statistical Organisation (CSO) every month.
Even amid the pandemic, India is on the path to progress.
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