The economic slowdown continues to affect the important sectors of the economy. The biggest impact is on the production of important industries. According to the latest data released by the Ministry of Commerce and Industry on Thursday, the composite index of eight core industries in April-September, 2019-2020 stood at 120.6 points in September 2019, which is 5.2 percent lower than the index recorded in September 2018. Eight core industries include important sectors like coal, electricity, cement, fertilizer, crude oil, natural gas, whose performance is considered important for the health of the economy.

According to the latest government data, 7 of these 8 core industries have registered a decline in September this year as compared to last year. As per government data, coal production in September 2019 decreased by 20.5 percent compared to September 2018.

Crude oil production drop down 5.4 percent during September 2019 as compared to September 2018. While natural gas production fell by 4.9 percent during this period. The decline has also been documented in the production of petroleum refinery products. It decreased by 6.7 percent in September 2019 as compared to September 2018. In September 2019, steel production has also registered a slight decline of 0.3 percent, at the same time cement product reduced by 2.1 percent. As compared to September 2018, electricity generation fell 3.7 percent in September this year. The decline in coal mining has been recorded the most. This is the worst performance of the core sector industries in the last 14 years. 

Earlier, in August, the growth of 8 core sector had fallen by 0.5 percent. Actually, despite all efforts, the growth rate is not catching pace at all. Growth in core industries is only recorded in the production of fertilizer. According to the recent data released by the Ministry of Commerce and Industry, fertilizer production in the country during September 2019 increased by 5.4 percent as compared to September 2018. The cumulative production growth rate of the eight core industries was 1.3 percent during the April-September period of 2019-2020.

Image credit: deloitte