Eight core sectors improve to 4.2% in April
Helped by healthy growth in electricity, fertilisers, cement and coal, the output of eight core industries increased 4.2 percent in April, up from 2.5 percent in the previous month.
New Delhi: Helped by healthy growth in electricity, fertilisers, cement and coal, the output of eight core industries increased 4.2 percent in April, up from 2.5 percent in the previous month.
The growth of the eight core sector in April 2013 was 3.7 percent.
Electricity production increased 11.2 percent in April this year from 3.5 percent in the same month last year. Similarly, fertilisers, cement and coal registered higher growth during the month under review.
Fertilisers, cement and coal recorded a growth 11.1 percent, 6.7 percent and 3.3 percent respectively in April 2014, according to the data released by commerce and industry ministry today.
According to rating agency ICRA, "notwithstanding the pick up in core sector growth, IIP growth for April 2014 is expected to record less than one percent growth".
Showing no signs of recovery, index of industrial production (IIP) remained in negative territory for the second month in a row, contracting 0.5 percent in March due to declining output in manufacturing, especially capital goods.
The coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity sectors had expanded 2.7 percent in 2013-14.
The eight industries have a combined weight of about 38 percent in the Index of Industrial Production.
Steel production increased 3.1 percent compared with 10.1 percent in the same month last year.
The crude oil, natural gas and petroleum refinery product sectors contracted 0.1 percent, 7.7 percent and 2.2 percent, respectively, in April.