Core sector grows at 6-month high in Jan
In the month of January 2020, the output of eight core industries grew at a six-month high. At 2.2 per cent growth in the month, it was 70 bps higher than the 1.5 per cent growth in witnessed in the corresponding month a year ago and 10 bps higher than 2.1 per cent growth seen in the previous month. The eight core industries comprise of 40.27 per cent of the weights included in the index of industrial production (IIP) basket. The growth during the month has been aided by increased output in the five out of eight industries ' coal, refineries, steel, cement and electricity.
For December 2019, the year-on-year (YoY) growth has been revised upwards from 1.3 per cent earlier to 2.1 per cent as per latest data.
During the first 10 months of FY20'April 2019 to January 2020'the production in the eight core industries expanded at lacklustre 0.6 per cent, as against the 4.4 per cent growth seen in the corresponding period a year ago.
CARE Ratings' view
Based on the core sector growth, IIP is expected to grow by 2-3 per cent for January 2020. We are expecting IIP to grow by 2 per cent for FY20.
CARE RATINGS "Core Sector Update"
Disclaimer: This report is prepared by CARE Ratings Ltd. CARE Ratings has taken utmost care to ensure accuracy and objectivity while developing this report based on information available in public domain. However, neither the accuracy nor completeness of information contained in this report is guaranteed. CARE Ratings is not responsible for any errors or omissions in analysis/inferences/views or for results obtained from the use of information contained in this report and especially states that CARE Ratings has no financial liability whatsoever to the user of this report.
ABOUT THE AUTHORS: 'Madan Sabnavis is Chief Economist. He can be contacted on: firstname.lastname@example.org or 91-22-68374433 ' Dr Rucha Ranadive is Economist. She can be contacted on: email@example.com or 91-22-68374406