Core sector growth slows to 2.6% in 2013-14, lowest in decade
The growth rate of eight core sector industries decelerated to 2.6 percent in 2013-14, the lowest in almost a decade, due to a decline in crude oil and natural gas production.
New Delhi: The growth rate of eight core sector industries decelerated to 2.6 percent in 2013-14, the lowest in almost a decade, due to a decline in crude oil and natural gas production.
The infrastructure industries in 2012-13 had registered 6.5 percent growth.
Experts said the figures are indicating a possible slowdown in industrial production.
"The slack core sector print in conjunction with the decline in merchandise exports in year-on-year terms points towards a likely industrial contraction in March 2014," rating agency ICRA said.
Crude oil and natural gas production in 2013-14 recorded a negative growth of 0.2 percent and 13 percent, respectively.
Growth in the output of coal, petroleum refinery products and cement slowed down to 0.8 percent, 1.7 percent and 3 percent, respectively. However, fertiliser, steel and electricity recorded a relatively healthy growth.
In March, the core sector growth slowed to 2.5 percent from 7 percent in the same month a year ago.
The eight core industries have a combined weight of about 38 percent in the Index of Industrial Production.
In the month under review, crude oil, natural gas and fertiliser output fell 1.6 percent, 9.3 percent and 6.1 percent, respectively.
Growth in production of coal, petroleum refinery products and steel slowed to 0.7 percent, 2.8 percent and 5.4 percent in March.
Cement output was unchanged in March. Electricity generation increased to 5.4 percent.
In January and February, the eight sectors grew by 1.6 percent and 4.5 percent, respectively.