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Core sector growth hits 6-month high of 5.2% in September

Eight core sectors, which comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP), grew to a six-month high of 5.2 per cent in September, driven by a brisk performance in coal, natural gas and refinery segments, official data showed on Tuesday.

BT Online        Last Updated: October 31, 2017  | 18:10 IST
Core sector growth hits 6-month high of 5.2% in September
Photo: Reuters

Eight core sectors, which comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP), grew to a six-month high of 5.2 per cent in September, driven by a strong performance in coal, natural gas and refinery segments, official data showed on Tuesday.

The combined Index of Eight Core Industries stands stood at 122.5 in September 2017. The eight core industries, which include coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - had witnessed a growth of 5.3 per cent in September last year.

The expansion in September is highest since April, when the core sectors' growth stood at 2.6 per cent. Coal production increased by 10.6 per cent in September, 2017 over September, 2016. Its cumulative index increased by 1.5 per cent during April to September, 2017-18 over corresponding period of the previous year.

Crude Oil production increased by 0.1 per cent in September, 2017 over September, 2016. Its cumulative index declined by 0.2 per cent during April to September, 2017-18 over the corresponding period of previous year.

The Natural Gas production increased by 6.3 per cent in September, 2017 over September, 2016. Its cumulative index increased by 5.0 per cent during April to September, 2017-18 over the corresponding period of previous year.

Petroleum Refinery production increased by 8.1 per cent in September, 2017 over September, 2016. Its cumulative index increased by 2.1 per cent during April to September, 2017-18 over the corresponding period of previous year.

Fertiliser output recorded a degrowth during the month under review. Fertilizer production declined by 7.7 per cent in September, 2017 over September, 2016. Its cumulative index declined by 2.1 per cent during April to September, 2017-18 over the corresponding period of previous year.

However, growth rate of steel and cement production was slower in September this year as against the same month previous fiscal. Electricity generation recorded almost flat growth.

Steel production increased by 3.7 per cent in September, 2017 over September, 2016. Its cumulative index increased by 5.5 per cent during April to September, 2017-18 over the corresponding period of previous year.

Cement production increased by 0.1 per cent in September, 2017 over September, 2016. Its cumulative index declined by 1.9 per cent during April to September, 2017-18 over the corresponding period of previous year.

Electricity generation (weight: 19.85 per cent) increased by 5.2 per cent in September, 2017 over September, 2016. Its cumulative index increased by 6.0 per cent during April to September, 2017-18 over the corresponding period of previous year.

Cumulatively, the growth in the eight core sectors during April-September this fiscal slowed down to 3.3 per cent as against 5.4 per cent in the same period last fiscal.

Healthy growth in key sectors would have positive implications on the Index of Industrial Production (IIP) as these eight segments account for about 41 per cent to the total factory output.

 

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