Core sectors' growth hits over 1-year high of 6.8% in November; steel, cement in demand

New Delhi: Eight core sectors expanded at the fastest pace in more than a year at 6.8 percent in November 2017 on account of robust performance in segments like refinery, steel and cement, official data showed on Monday.

The output growth for the month under review is highest since October 2016, when these core sectors had witnessed 7.1 percent rise.

These eight industries – coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity – had witnessed a growth of 3.2 percent in November 2016.

The output of refinery products, steel and cement rose by 8.2 percent, 16.6 percent and 17.3 percent, respectively on an annual basis in November 2017, according to the data released by the commerce and industry ministry.

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Crude oil and natural gas output too registered a positive growth during the month under review.

On the other hand, coal output growth rate recorded a negative growth during the month.

Cumulatively, the growth in the eight core sectors during April-November this fiscal slowed to 3.9 percent as against 5.3 percent in the same period last fiscal.

A healthy growth in key sectors will have positive implications on the Index of Industrial Production (IIP) as these eight segments account for about 41 percent of the total factory output.

Commenting on the data, Economic Affairs Secretary S C Garg described 6.8 percent rise in core sector output as an impressively growth.

“Steel and cement growth at 16.6 percent and 17.3 percent indicates restoration of the production in these sectors over pre-demonetisation levels. It augurs well for real sector investment,” he said in a tweet.