Core sector output shrinks 15% in June 2020

India’s infrastructure sector contracted at a slower pace in June compared to May aided by the relaxation in lockdown restrictions. However, barring fertilisers, other seven industries registered a decline in output, prompting independent economists to expect industrial production to again contract in June.

Daily Current Affairs Quiz 2020

Key-Points

The output of eight core infrastructure industries shrank by 15 % in June this year due to fall in the production of coal, crude oil, natural gas, steel, cement and electricity.

Barring fertilisers, other seven industries registered a decline in output. The output of coal sector fell 15.5 %, crude oil declined by 6 %, natural gas by 12 %, refinery products fell by 8.9 %, steel sector plunged by 33.8 %, cement by 6.9 % and electricity declined by 11 %.

During April-June in the current fiscal, the sector’s output dipped by 24.6 per cent as compared to positive growth of 3.4 per cent in the same period in the previous year.

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.