Six core sectors clocked growth of 6.6% in Dec

Six core sectors clocked growth of 6.6% in Dec

The output of six core infrastructure industries grew by 6.6 per cent in December, 2010, vis-a-vis 6.2 per cent expansion in the year-ago period, driven by the robust performance of the crude oil and petroleum refinery sectors.

The December data for six industries — crude oil, petroleum refinery products, coal, electricity, cement and finished steel — shows revitalised growth in these sectors following a slowdown in November, when output rose by just 3 per cent as against 5.9 per cent expansion in the corresponding period of 2009-10.

According to economists, the healthy growth in the month under review will have a positive impact on the December Index of Industrial Production (IIP), which is likely to be released next month.

Good show

The core infrastructure industries have a weight of 26.7 per cent in the Index of Industrial Production (IIP). The IIP had sunk to an 18-month low of 2.7 per cent in November, 2010.

Crude oil output registered significant growth of 15.8 per cent, while petroleum refinery output rose by 8.3 per cent in December, 2010, as against 1.1 per cent and 0.9 per cent expansion, respectively, in the same period last year, data released by the Industry Ministry said.

While production of coal registered 3 per cent growth in December, 2010, finished steel output increased by 11.2 per cent. In December, 2009, coal and finished steel production grew by 1.2 per cent and 9.6 per cent, respectively.

However, electricity production slowed down in December, 2010, growing by just 4.3 per cent during the month as against 6.6 per cent expansion in December, 2009.