Feb core sector growth slips from 9.4% to one-yr low 1%

The growth of eight core sectors slipped to an over-one-year low of 1 per cent in February mainly due to decline in output of crude oil, natural gas, refinery products, fertilisers and cement.

The growth rate of eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity was 9.4 per cent in February 2016.

The previous low of 0.9 per cent was recorded in December 2015. In January 2017, these sectors grew by 3.4 per cent.

The core sectors, which contribute 38 per cent to the total industrial production, expanded 4.4 per cent in April-February this fiscal, compared to the 3.5-per cent growth in the same period the previous financial year, according to the data released by the commerce and industry ministry on Friday.

Commenting on the data, rating agency ICRA said: "We expect the IIP to post a subdued volume growth in February 2017."

However, coal and steel recorded a positive growth during the month.

The output of crude oil, natural gas, refinery products, fertilisers and cement contracted by 3.4 per cent, 1.7 per cent, 2.3 per cent, 5.3 per cent and 15.8 per cent respectively during the month under review.