Contraction in core infra sectors continues in August

NEW DELHI: The eight core infrastructure sectors continued on their negative growth trend for the sixth month in a row in August, with the crucial segments contracting by 8.5 per cent during the month. The data only shows that the pace of economic recovery likely will be slow. The eight sectors remain an important gauge for the health of the overall economy since they account for nearly 40 per cent of the country’s overall factory output, which is in turn measured by the Index of Industrial Production.

“The combined Index of Eight Core Industries stood at 117.6 in August, 2020, which declined by 8.5 (provisional) per cent as compared to the Index of August, 2019,” the Centre said. Data released by the Commerce and Industry Ministry on Wednesday shows that the production of the eight core sectors had contracted 0.2 per cent in August 2019, while the figure had contracted by 8 per cent in July, 2020.