The ongoing growth momentum may slowdown as six core-infrastructure industries registered a growth rate of 6.6 per cent in the first five months of current fiscal (April to August, 2007) as against 8.3 per cent during the corresponding period of the previous fiscal.
However, the index of six core-infrastructure industries having a combined weight of 26.7 per cent in the Index of Industrial Production (IIP) recorded a growth of 9 per cent in August this year compared to growth of 6.6 per cent in the same month last year, latest data released here show. The analysis of data shows growth rate of crude petroleum production with a weight of 4.17 per cent in the IIP slowed down to one per cent during April-August this year compared to compared to 3.1 per cent during the same period of 2006-07.
Sharp drop
The growth rate sharply dropped to 6.4 per cent in August 2007 compared to a high growth rate of 12 per cent in the corresponding month last fiscal. The syndrome of slow down has also been noticed in the other core sector of petroleum refinery Products. For instance, petroleum refinery production with a weight of 2 per cent in the IIP registered a growth of 8.2 per cent in August 2007 compared to growth of 12.1 per cent in August 2006.
The petroleum refinery production growth rate dropped to 10.4 per cent during April-August 2007-08 compared to 12.1 per cent during the same period of 2006-07.
Similarly, growth rate of coal production with a weight of 3.22 per cent in the IIP drastically dropped to 1.3 per cent during April-August 2007-08 compared to an increase of 6.6 per cent during the same period of 2006-07. On the other hand electricity generation with a weight of 10.17 per cent in the IIP registered a higher growth rate of 8.2 per cent during April-August 2007-08 compared to 5.8 per cent during the same period of 2006-07.
The syndrome of slowdown also gripped the steel sector. For instance, the growth rate of finished (carbon) steel production with a weight of 5.13 per cent in the IIP dropped to 5.9 per cent during April-August 2007-08 compared to an increase of 12.5 per cent during the same period of 2006-07. Cement production with a weight of 1.99 per cent in the IIP registered impressive growth of 16.2 per cent in August 2007 compared to 2.9 per cent in same month last year.
