Core infrastructure sector contracts for eight straight month

The core infrastructure sector contracted for the eight straight month —with output falling 2.5 per cent in October —because of a slump in the production of crude oil, natural gas, refinery products and steel.

Production in the eight core sectors had contracted 5.5 per cent in October 2019, the commerce and industry ministry said. During April to October 2020-21, the core sector contracted by 13 per cent.

“Industrial recovery is still weak and the traction seen in IIP growth lately is triggered largely by the festival demand,” said Sunil Kumar Sinha, principal economist, India Ratings and Research.

The core sector has a weight of 40.27 per cent in the industry index.