Infra sector grows by 5.1% in September
New Delhi: Showing signs of further pick-up in the economy, annual growth of key infrastructure industries including, coal and cement, have more than doubled to seven-month high of 5.1 percent in September.
The eight core industries -- coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity -- have shown marked improvement, both year-on-year as well on sequential basis.
These industries had expanded by mere 2.3 in August 2012 and 2.5 percent in September last year.
The coal, refinery products and cement, have shown impressive double-digit growth expanding by 21.4 percent, 11.4 percent and 13.4 percent, respectively, in September over the same month last year, according to the official data released Wednesday.
The healthy infrastructure growth comes on the back of turnaround of overall industrial output which expanded by 2.7 percent in August, reversing the trend of contraction witnessed during the previous two months.
However, crude oil and natural gas continued to remain in problem showing negative growth of 1.7 percent and 14.8 percent, respectively.
With better sequential performance of these key eight segments, the overall industrial production measured on IIP for September is likely to be better, experts said.
These eight industries account for about 40 percent in the IIP. The IIP data for September will be released in the third week next month.
Expansion in steel production slowed to 2 percent and growth in cement output was 13.4 percent during the month under review.
There was healthy improvement in the fertilizer production also. Its production grew by 5.7 percent in September as against a decline of 2.1 percent.
On infrastructure industries' growth numbers, Assocham President R N Dhoot said such improvements will help in revival of negative sentiments persisting in the economy.
Coal output growth improved to 8.3 percent in April-September this year against a decline of 4.8 percent in the year ago period.
Crude oil production during April-September declined by 0.8 percent compared to a growth of 5.1 percent. Natural Gas production too contracted by 12.5 percent during April-September.
However, petroleum refinery production grew by 5.4 percent in the first half of the fiscal, against 4.6 percent growth in the last year period.
Steel production expanded 2.6 percent and cement output by 7.4 percent in the first six months of the current fiscal.
Electricity generation grew by 3.7 percent in September compared to 8.8 percent in the same month last year. The growth in the generation was 4.7 percent during April-September.