Millennium Post

Some good news: Oct core sector growth at 4-month high of 6.3%

The eight core industries — coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity — had shrunk by 0.1 per cent in October last year.

The growth rate was 1.9 per cent in September this year. The core sector contributes 38 per cent in the overall industrial production, a parameter that RBI takes into account while framing its monetary policy.

The Reserve Bank of India (RBI) is expected to hold interest rate at 8 per cent in its fifth bi-monthly monetary policy review tomorrow. The industry has been demanding a rate cut to push the economic growth, which has slowed to 5.3 per cent in September quarter from 5.7 per cent in the three months to June 2014.

Production in coal, refinery products and electricity registered a growth of 16.2 per cent, 4.2 per cent and 13.2 per cent, respectively in October, as per the data released by the Commerce and Industry Ministry. Growth in coal and refinery products had declined by 3.5 per cent and 5 per cent, respectively in October 2013 while growth in power generation was only 1.3 per cent.

Expansion in crude oil and steel production was 1 per cent and 2.3 per cent respectively in October.

The growth in the two sectors was slower than the previous month. During April-October, the eight sectors grew by 4.3 per cent as against 4.2 per cent in the same period last year.
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