India’s core sector output surged to 18.1% in May on a year-on-year basis as against 8.4% in the last month, revealed data by the commerce and industry ministry on Thursday.
The growth can be attributed to increased production in cement, coal, fertilizers and electricity industries over the corresponding period of last fiscal.
The cement industry recorded the highest growth of 26.3% in the month of May this year as against 8% last month.
Another key driver was the coal sector that witnessed a sharp incline of 25.1%. Other sectors including fertilizer, electricity and natural gas grew by 22.8%, 22% and 7% respectively.
According to the data, the crude oil sector witnessed a growth of 4.6% against a contraction of 0.9% last month. Similarly, steel industry grew by 15% in May.
The production of petroleum refinery products increased by 16.7% as compared to 9.2% last month.
The core sector makes up 40.27% of the Index of Industrial Production (IIP), making it a lead indicator of industrial activity.
