Negative growth in crude oil, natural gas, refinery products, fertilisers and steel has pulled down the growth of the eight core industries to 2.7 per cent in July. Growth in the infrastructure sector, which has a combined weight of about 38 per cent in the Index of Industrial Production (IIP), stood at 5.3 per cent in July 2013.
Crude oil, natural gas, refinery products, fertilisers and steel recorded a negative growth of 1 per cent, 9 per cent, 5.5 per cent, 4.2 per cent and 3.4 per cent, respectively in July, according to the data of the Commerce and Industry Ministry. However, coal, cement and electricity production grew by 6.2 per cent, 16.5 per cent and 11.2 per cent, respectively during the month under review.
During April-July, growth in the eight core industries grew by 4.1 per cent from 4.1 per cent in the year-ago period. Led by healthy growth in cement and electricity, the eight core industries grew to a nine- month high of 7.3 per cent in June.
Meanwhile, the country’s current account deficit (CAD) narrowed sharply to 1.7 per cent of GDP in the April-June quarter of this fiscal mainly on account of reduction in trade deficit, and a steep decline in gold imports. ‘The lower CAD was primarily on account of a contraction in the trade deficit contributed by both a rise in exports and a decline in imports,’ RBI said in a statement.
CAD narrowed sharply to $7.8 billion (1.7 per cent of GDP) in the first quarter of the 2014-15 fiscal, from $21.8 billion (4.8 per cent of GDP) in the year-ago period. However, it was higher than $1.2 billion (0.2 per cent of GDP) in the fourth (January-March) quarter of the previous fiscal, 2013-14.
The decline in imports was primarily led by a steep 57.2 per cent fall in gold imports, which amounted to $7 billion, significantly lower than $16.5 billion in the April-June quarter of 2013-14, the RBI said. The trade deficit contracted by about 31.4 per cent to $34.6 billion in Q1 2014-15 from $50.5 billion in Q1, 2013-14.
Exports increased by 10.6 per cent in the first quarter of 2014-15 to USD 81.7 billion. Imports moderated by 6.5 per cent to $116.4 billion. The CAD, which is the difference between the inflow and outflow of foreign currency, had touched a record high of $87.8 billion (4.8 per cent) in 2012-13 fiscal mainly on account of steep increase in gold imports.
It had narrowed to USD 32.4 billion (1.7 per cent) for the entire 2013-14 fiscal after government imposed import restrictions on the precious metal.
Crude oil, natural gas, refinery products, fertilisers and steel recorded a negative growth of 1 per cent, 9 per cent, 5.5 per cent, 4.2 per cent and 3.4 per cent, respectively in July, according to the data of the Commerce and Industry Ministry. However, coal, cement and electricity production grew by 6.2 per cent, 16.5 per cent and 11.2 per cent, respectively during the month under review.
During April-July, growth in the eight core industries grew by 4.1 per cent from 4.1 per cent in the year-ago period. Led by healthy growth in cement and electricity, the eight core industries grew to a nine- month high of 7.3 per cent in June.
Meanwhile, the country’s current account deficit (CAD) narrowed sharply to 1.7 per cent of GDP in the April-June quarter of this fiscal mainly on account of reduction in trade deficit, and a steep decline in gold imports. ‘The lower CAD was primarily on account of a contraction in the trade deficit contributed by both a rise in exports and a decline in imports,’ RBI said in a statement.
CAD narrowed sharply to $7.8 billion (1.7 per cent of GDP) in the first quarter of the 2014-15 fiscal, from $21.8 billion (4.8 per cent of GDP) in the year-ago period. However, it was higher than $1.2 billion (0.2 per cent of GDP) in the fourth (January-March) quarter of the previous fiscal, 2013-14.
The decline in imports was primarily led by a steep 57.2 per cent fall in gold imports, which amounted to $7 billion, significantly lower than $16.5 billion in the April-June quarter of 2013-14, the RBI said. The trade deficit contracted by about 31.4 per cent to $34.6 billion in Q1 2014-15 from $50.5 billion in Q1, 2013-14.
Exports increased by 10.6 per cent in the first quarter of 2014-15 to USD 81.7 billion. Imports moderated by 6.5 per cent to $116.4 billion. The CAD, which is the difference between the inflow and outflow of foreign currency, had touched a record high of $87.8 billion (4.8 per cent) in 2012-13 fiscal mainly on account of steep increase in gold imports.
It had narrowed to USD 32.4 billion (1.7 per cent) for the entire 2013-14 fiscal after government imposed import restrictions on the precious metal.