Eight core sector industries lose steam, growth slackens

New Delhi: Eight infrastructure industries grew 3.5 percent in August this year, down from 4.4 percent expansion witnessed in the same month last year.

The eight industries – crude oil, petroleum refinery products, natural gas, fertilisers, coal, electricity, cement and finished steel– have a weight of 37.90 percent in the overall Index of Industrial Production (IIP). Electricity, steel and cement output grew by 8.9 percent, 7.7 percent and 7.2 percent in August, respectively, according to the provisional data released today.

In the same month last year, electricity production had grown 1.6 percent while steel and cement sectors had posted 10.8 percent and 1.6 percent expansion, respectively. Crude oil production grew 1.6 percent in the month under the review against 15.2 percent in the comparable period last year.

Petroleum refinery products output grew 3.9 percent in August. In the same month last year, the sector had witnessed a contraction of 2.3 percent.

Fertiliser output increased by 4.3 percent in August. It was -5.7 percent in the same period last year. Natural gas and coal output contracted by 5.3 percent and 15.3 percent in August, respectively.

PTI