Contracting for the fourth consecutive month, the output of eight core infrastructure industries shrank by 15 per cent in June due to fall in the production of coal, crude oil, natural gas, steel, cement and electricity.
The eight core sectors had expanded by 1.2 per cent in June 2019, data released by the Commerce and Industry Ministry on Friday showed.
Barring fertiliser, all seven sectors - coal, crude oil, natural gas, refinery products, steel, cement, and electricity - had recorded negative growth in May.
The output of coal, crude oil, natural gas, refinery products, steel, cement and electricity declined by 15.5 per cent, 6 per cent, 12 per cent, 8.9 per cent, 33.8 per cent, 6.9 per cent, and 11 per cent, respectively.
During April-June 2020-21, the sectors' output dipped by 24.6 per cent as compared to positive growth of 3.4 per cent in the same period the previous year.
These eight industries account for 40.27 per cent in the Index of Industrial Production (IIP). In May, the sectors' output contracted by 22 per cent.
Commenting on the numbers, Aditi Nayar, Principal Economist, Icra Ltd, said the pace of the de-growth in the core sectors narrowed moderately June.
The trend of an uneven recovery being displayed by various sectors continued in June 2020, with cement, refinery products and steel recording a sharp improvement, even as electricity, natural gas and crude oil displayed a muted pickup, she added.
"In conjunction with the core sector industries, indicators of freight, fuel consumption and GST suggest that the uneven improvement recorded by the Index of Industrial Production in May 2020, continued in June 2020," she said, adding "based on the available data, we expect the IIP to display a contraction of 15-20 per cent in June 2020".