The economic slowdown in September 2019 has been significantly reflected in the performance of India’s eight Core Infrastructure Industries. Statistics show a worrisome contraction by 5.2% during this month. This scenario further underscores the severity of the ongoing economic complications faced by the nation.
Performance of Individual Sectors: A Close Look
These eight industries play a critical role in the economy, and their performance significantly affects the overall growth rate. However, the only industry that managed to record improvement in output amid the slowdown was the fertilizers sector. It witnessed a positive change, with an increased output of 5.4% in September 2019.
Despite this single instance of progress, the other seven infrastructure industries unfortunately experienced a sharp decline, thrusting them into a state of contraction. These include significant sectors like Refinery Products, Electricity, Steel, Coal, Crude Oil, Natural Gas, and Cement.
Notably, the coal sector emerged as the worst performer for several reasons including an extended monsoon, an escalation in renewable energy supply and labour disputes at the state-run enterprise, Coal India Ltd.
Weightage in Order: A Simplified View
Among these eight Core Industries, their significance or weightage varies. The industries are ranked in decreasing order of their weightage as follows: Refinery Products, Electricity, Steel, Coal, Crude Oil, Natural Gas, Cement, and Fertilizers.
| Industry | Weight (In percentage) |
|---|---|
| Petroleum & Refinery production | 28.04 |
| Electricity generation | 19.85 |
| Steel production | 17.92 |
| Coal production | 10.33 |
| Crude Oil production | 8.98 |
| Natural Gas production | 6.88 |
| Cement production | 5.37 |
| Fertilizers production | 2.63 |
The Overall Impact on the Economy
The contraction of these core industries is a clear indication of the economic slowdown in India. It portrays the challenge faced by the nation in stimulating growth and presents a pressing need for strategic measures to boost the performance of these key sectors.
Last Modified: February 6, 2024