Core sector growth slips to over 1-year low of 1% in February

New Delhi: The growth of eight core sectors slipped to over one-year low of 1 percent 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 percent in February 2016. The previous low of 0.9 percent was recorded in December 2015. In January 2017, these sectors grew by 3.4 percent.

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

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 positive growth during the month.

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