Core sector grows fastest in one year

Growth in infra industries rises to 8%

In a sign that India’s industrial production has gained momentum, the growth in key infrastructure industries rose sharply to a one-year high of 8 per cent in September from 3.7 per cent a month ago, the Commerce and Industry Ministry said .

The output of eight infrastructure industries — coal, crude oil, natural gas, refinery products, steel, cement, fertilisers and electricity — had grown 8.3 per cent a year ago.
Electricity, coal, cement, refinery products, steel and fertiliser sectors led the growth in output of core industries in September.

While electricity sector output grew 12.6 per cent during the month, coal 12.5 per cent and cement sector grew at 11.5 per cent. Refinery products, steel, and fertilisers sectors grew by 8 per cent, 6.6 per cent and 5.3 per cent on year, respectively.

Natural gas production contracted by 14.1 per cent during September. The eight industries together account for 37.9 per cent weight in the Index of Industrial Production.

The core sector output grew 3.2 per cent during April-September, the first half of the current financial year, compared with 6.6 per cent a year ago, the ministry said.

Experts said though the growth rate in September is high, there is a need to carefully watch the coming 2-3 months.

"One should not be in a hurry to say that this figure is reflecting revival. If the similar trend will continue for another 2-3 months then we can say. But it will have a positive impact on IIP numbers for September," CRISIL Principal Economist D K Joshi said.

The IIP numbers for September are likely to be announced on November 12. Factory output slowed down sharply to 0.6 per cent in August mainly on account of contraction in manufacturing and mining.

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