Core Sector Growth Slows to 2.5%: April 2017

A sharp fall in the output of coal, natural gas and crude oil pulled down growth in the group of eight core sectors to a three-month low in April. The core sector expanded 2.5% in the first month of the new fiscal year, compared with 5.3% in March and 8.7% a year earlier.

The eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity constitute 40.27% of the total industrial production.

The base year to calculate the growth in the core industries has been revised to 2011-12 from 2004-05, starting April this year, in line with the new base year for the Index of Industrial Production. Coal output slipped 3.8% and cement production fell 3.7%.Crude oil output dropped 0.6%.

In April 2016, the core sector growth was the highest since December 2014. Fertiliser output rose 6.2% as prediction of a good monsoon will lead to higher demand. Steel output grew 9.3% on back of better demand and curbs on dumping.

No comments: