Infrastructure: Growth in 8 core sector industries declines 0.6 pct in Oct

Infrastructure growthCrisil's Chief Economist D K Joshi said the performance of the core sector is likely to remain subdued in the coming months as well. Reuters

Dashing hopes of recovery, the output of eight core sector industries contracted by 0.6 per cent in October due to poor showing by coal, oil and gas sectors.

The decline in output of eight core sector industries – coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, electricity -- follows a robust 8 per cent growth in September.

According to the data released by the government today, the output of eight infrastructure industries in April-October was a mere 2.6 per cent against 6.8 per cent in the same period of the last fiscal.

The eight core industries have a combined weight of about 38 per cent in the Index for Industrial Production (IIP).

The October IIP numbers will be released in the second week of December.

Commenting on the data, Crisil's Chief Economist D K Joshi said the performance of the core sector is likely to remain subdued in the coming months as well.

Natural gas output contracted by 13.6 per cent in October year-on-year.

Coal production declined by 3.9 per cent.

Crude oil output was also poor with 0.8 per cent fall in the month under review.

Petroleum refinery production declined by 4.8 per cent. Among those which put up good performance, fertiliser output registered a growth of 4.1 per cent and steel production grew at 3.5 per cent.

Cement and power generation sectors posted marginal growth of over 1 per cent each in the month under review.

In April-October, the output of natural gas contracted by 16.1 per cent.

Crude oil production declined by 1.2 per cent in the seven-month period.

In case of production of petroleum refinery products, the growth slowed down to 3.7 per cent in the first seven months of this fiscal as compared to 29.7 per cent in the same period last year.

... contd.

Please read our terms of use before posting comments
TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s).
comments powered by Disqus