Supported by statistical base effect and some ramp up in government expenditure, the output of eight core industries’ catapulted to a 32-month high of 6.8 percent in March 2021 driven by base effect-led uptick in production of natural gas, steel, cement and electricity, official data showed.

The growth rate of the eight infrastructure sectors - - coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity -- stood at (-) 8.6 percent in March 2020. According to the commerce and industry ministry data, production of natural gas, steel, cement and electricity jumped 12.3 percent, 23 percent, 32.5 percent and 21.6 percent in March, as against(-) 15.1 percent, (- ) 21.9 percent, (-) 25.1 percent and (-) 8.2 percent in March 2020, respectively. Coal, crude oil, refinery products and fertiliser segments recorded negative growth during the month under review.

During 2020-21 (AprilMarch), output of the eight sectors contracted by 7 percent as against a positive growth of 0.4 percent in 2019-20. ICRA Ltd Chief Economist Aditi Nayar said the 6.8 percent growth in March, a "32- month high", is due to the base effect. The low base of the lockdown-hit April 2020 would push up the year-on-year expansion of the index of eight core industries to a sharp 50- 70 percent in April 2021, with exceptionally high growth expected in cement and steel, she added. "Based on the available data, we project the Index of Industrial Production (IIP) to record a sharp growth of 17.5-25 percent in March 2021," she added.

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