In February, output fell in all major segments, including coal, crude oil, natural gas, and refinery goods. According to government data released on Wednesday, productivity in eight key infrastructure sectors fell by 4.6 percent in February. This is the most dramatic drop in the last six months. The sectors had seen a negative growth rate of 6.9% in August 2020. The key business sectors of the economy grew by 0.9 percent in January of this year.
According to data from the Commerce and Industry Ministry, production in all main segments, including coal, crude oil, natural gas, and refinery goods, dropped in February. Coal production fell by 4.4 percent, crude oil fell by 3.2 percent, natural gas fell by 1%, refinery goods fell by 10.9 percent, fertilizers fell by 3.7 percent, steel fell by 1.8 percent, cement fell by 5.5 percent, and energy fell by 0.2 percent.
According to the government, the growth rate of these eight sectors was 6.4 percent in February 2020. “For February 2021, the leading indicators such as the core market, auto production, and non-oil exports have revealed a distinctly mixed trend,” ICRA Limited Principal Economist Aditi Nayar told PTI. “We expect the IIP [Index of Industrial Production] contraction to intensify to 2-3 percent in February 2021 from 1.6 percent in January 2021, dependent on existing data.