The low base of last year due to the stringent national lockdown aided in propping up India’s eight major industries’ output during May 2021 on a year-on-year basis.
The pandemic-triggered national lockdown (from late March 2020) during Q1FY21 had a massive impact on the economy, which suffered a GDP contraction of 24.4 per cent. It was only on June 1, 2020, that the partial unlock measures were implemented.
Unlike last year, the lockdown in 2021 was more regional in nature. Production and manufacturing by several industries were allowed this time around.
Accordingly, the Index of Eight Core Industries’ (ICI) reading for last month showed an expansion of 16.8 per cent from a decline of 21.4 per cent in output during the same month of the last year.
On a sequential basis, however, the output of eight major industries declined 3.74 per cent in May at 125.8 (index reading) from 130.7 recorded in April.
“The combined Index of Eight Core Industries stood at 125.8 in May 2021, which increased by 16.8 per cent (provisional) as compared to the Index of May 2020,” the Ministry of Commerce & Industry said in a statement.
“The production of coal, natural gas, refinery products, steel, cement, and electricity industries increased in May 2021 over the corresponding period of last year.
“Besides, the final growth rate of Index of Eight Core Industries for February 2021 is revised to (-) 3.3 per cent from its provisional level (-) 4.6 per cent.”
The ICI index comprises 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP). These industries comprise coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity.
