Core sector growth drops to 4.6% in May

Reflecting slowdown in the economy, the growth rate of eight infrastructure sectors slowed to 4.6 percent in May due to poor performance of crude oil, natural gas and fertiliser.

The core industries that also include coal, electricity, cement, petroleum refinery products and finished steel, and carry 37.9 percent weight in the Index of Industrial Production (IIP), had grown by 5.8 percent in May last year.

The cumulative growth rate of infrastructure industries during April-May 2012 also slowed down to 4.2 percent, from 5 percent in the same period last year, according to the data released today by the Ministry of Commerce and Industry today.

[caption id=“attachment_362008” align=“alignleft” width=“380” caption=“Natural gas and fertiliser output contracted by 10.8 percent and 15.1 percent respectively during May. Reuters”]  [/caption]

Natural gas and fertiliser output contracted by 10.8 percent and 15.1 percent respectively during May.

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Petroleum refinery products and crude oil production slowed down to 2.9 percent and 0.5 percent, from 4.5 percent and 9.8 percent respectively during May 2011.

Steel and electricity production too declined to 4.9 percent and 5.2 percent in May, from 8 percent and 10.3 percent in May 2011 respectively.However, cement and coal production grew 22.1 percent and 8 percent during the month under review, over May last year.

PTI