Millennium Post

8 core sectors’ June output jumps 7.3%

Indicating at green shoots in the economy, healthy growth in coal, crude oil, cement and electricity, helped the eight core industries to grow  by 7.3 per cent in June. Growth in the infrastructure sector, which has a combined weight of about 38 per cent in the index of industrial production (IIP), was 1.2 per cent in June 2013.

Coal, crude oil, cement and electricity recorded a growth of 8.1 per cent, 0.1 per cent, 13.6 per cent and 15.7 per cent respectively in the month under review.

Natural gas and fertiliser output recorded a negative growth of 1.7 per cent and 1 per cent, according to the data of the Commerce and Industry Ministry.

Refinery products output growth slowed down by 1.2 per cent as against 1.8 per cent in June last year. Similarly steel production too declined by 4.2 per cent in June from 7.6 per cent in the same month last year. During Q1, growth in the core industries grew by 4.6 per cent from 3.7 per cent in the year-ago period.

SBI chief economic advisor Saumya Kanti Ghosh said he would increase his quarterly GDP growth forecast to 5.4-5.5 per cent but cautioned that the higher number could also partially be attributed to the ‘low base effect’.
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