India's core sector output grew 3.2% in October, the same as in the previous month, but a robust increase in coal and cement output and strong electricity generation provided some cheer.
The growth was much slower compared with the 9% increase posted in the same month last year.
Four of the eight industries re corded a disappointing contraction in October 2015, while cement and fertiliser sectors posted double-digit growth at 11.7% and 16.2%, respectively.
Refinery output contracted 4.4% after having grown for five months, while crude oil produc tion fell 2.1%. Output of natural gas and steel fell 1.8% and 1.2% respectively.
Cement production has seen double-digit growth after more than a year. The sharp turn around is because of a favourable base effect production had fallen 1.2% a year earlier and possibly also due to a pickup in some infrastructure sectors and the r plenishment of inventories post a contraction last month.
Notwithstanding the pickup in coal output growth of 6.3%, the pace of expansion of thermal electricity generation fell in sequential terms 8.8% from 10.8% in September.
Aditi Nayar, senior economist at ICRA, said the likelihood of the sustainability of the double-digit growth of cement output remained unclear despite the government's capital expenditure growing.
Steel output has been sluggish because of competition from cheaper imports.
No comments:
Post a Comment