Millennium Post

Growth rate of eight core sectors doubles

Growth rate of eight core sectors doubles
Eight core industries logged 5.1 per cent growth in September, led by double-digit growth in coal and petroleum refinery products, government data showed on Wednesday.

During the corresponding month of 2011, the eight industries, which have a combined weight of 37.9 per cent in the index of industrial production (IIP), had registered a growth of 2.5 percent.  The eight core industries are coal, crude oil, natural gas, petroleum refinery products, fertilisers, steel, cement and electricity.

The cumulative growth of the core industries during April-September 2012-13 period was 3.2 per cent compared to the 5 per cent growth registered during the corresponding period of the previous fiscal, according to data released by the commerce and industry ministry.

Coal production registered a growth of 21.4 per cent in September against a decline of 18.2 per cent in the corresponding month of 2011. In the first half also, the coal production growth rate improved to 8.3 per cent.

The output of petroleum refinery products grew by 11.4 per cent during the month under review compared to 4.3 per cent registered during corresponding month of 2011.

Cement production surged by 13.4 per cent in September 2012 compared to 2.2 per cent growth registered in September 2011.  However, the electricity, fertiliser and steel sectors registered sluggish growth.

The electricity sector, which has a 10.32 per cent weight in the index of industrial production, registered a growth of 3.7 per cent in September this year compared to 8.8 per cent during the corresponding month of previous year.  Fertiliser production increased by 5.7 per cent year-on-year in September 2012 and steel output grew by 2 per cent.

The crude oil sector continued to perform poorly as output remained in the negative zone for the fourth month in succession. The output declined by 1.7 per cent. Natural gas production too declined significantly by 14.8 per cent. Expansion in steel production slowed to 2 per cent.

‘The modest growth in September 2012 was on account of the double-digit growth witnessed in the production of coal, petroleum refinery products and cement,' the data said.

Showing signs of a turnaround, the index of industrial production grew by 2.7 per cent in August, reversing the trend of contraction witnessed during the previous two months.    
Agencies

Agencies

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