Growth in 8 core sector industries declines by 0.6% in Oct
Dashing hopes of recovery, the output of eight core sector industries contracted by 0.6 percent in October due to poor showing by coal, oil and gas sectors.
New Delhi: Dashing hopes of recovery, the output of eight core sector industries contracted by 0.6 percent 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 percent 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 percent against 6.8 percent in the same period of the last fiscal.
The eight core industries have a combined weight of about 38 percent 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 percent in October year-on-year.
Coal production declined by 3.9 percent.
Crude oil output was also poor with 0.8 percent fall in the month under review.
Petroleum refinery production declined by 4.8 percent.
Among those which put up good performance, fertiliser output registered a growth of 4.1 percent and steel production grew at 3.5 percent.
Cement and power generation sectors posted marginal growth of over 1 percent each in the month under review.
In April-October, the output of natural gas contracted by 16.1 percent.
Crude oil production declined by 1.2 percent in the seven-month period.
In case of production of petroleum refinery products, the growth slowed down to 3.7 percent in the first seven months of this fiscal as compared to 29.7 percent in the same period last year.
Coal production growth slowed to 1.3 percent in April-October.
The cement industry registered a growth of 4 percent in this period. Also, electricity sector growth 4.8 percent.
Fertilisers sector grew 2.7 percent and steel industry 4.4 percent in April-October 2013.