Growth In Fertilizer, Contraction In Eight Major Industries

Growth in fertilizer, contraction in the production of eight major industries for the fourth consecutive month in June. The production of eight major sectors of the country has witnessed contraction for the fourth consecutive month.

There has been a contraction of 15 percent in the production of eight major infrastructure industries in the month of June. There has been a contraction in these industries due to a decline in the production of coal, crude oil, natural gas, steel, cement, and electricity. In June 2019, there was an increase of 1.2 percent in the eight core sectors.

This information has been revealed by the data released on Friday by the Ministry of Commerce and Industry. The eight sectors include fertilizer, coal, crude oil, natural gas, refinery products, steel, cement, and electricity.

The production of coal, crude oil, natural gas, refinery products, steel, cement, and power has contracted by 15.5 percent, 6 percent, 12 percent, 8.9 percent, 33.8 percent, 6.9 percent, and 11 percent respectively. Among them, negative growth was also recorded in the month of May.

The production of fertilizer sector has shown a growth of 4.2 percent in June, but it is less than the growth of 7.5 percent in May.

There has been a contraction of 24.6 per cent in the production of these areas during the April to June quarter of the current financial year. At the same time, a positive growth of 3.4 percent was seen in the same period a year ago.

Eight industries account for 40.27 percent in the Industrial Production Index (IIP). In May, a contraction of 22 percent was recorded in the production of these sectors.

The International Monetary Fund (IMF) estimates that the Indian economy may see a contraction of 4.5 per cent in the current financial year, while Goldman estimates that the June quarter will be the worst quarter with a decline of 45 per cent in GDP, as tight. Business activities have been disrupted for at least two months due to lockdown rules