In a double whammy to the Indian economy, growth of eight core industries dropped to 2.1% in July against 7.3% in the same period last year. This is effectively a decline of 5.2% in one year. The latest setback to the Indian economy comes just days after it was revealed that the Indian economy had only grown by 5% in the first quarter of the financial year of 2019-20.
The eight core sectors are coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity. Quoting official data, a report by news agency PTI said that the latest decline in the growth of core infra sectors was due to a contraction in coal, crude oil, natural gas and refinery products.
The output of coal, crude oil, natural gas and refinery products recorded negative growth in July. The latest government data on the growth of eight core sectors also showed that this is the second quarter in the row that it has registered negative growth. During April-July, these sectors had grown by just 3% compared to 5.9% in the same period last year.
On Sunday, former Prime Minister Dr Manmohan Singh had asked the Centre’s Narendra Modi government to give up its vendetta politics to save the economy, which he said was reeling under a man-made crisis.