Core sector growth declines to 4.5% in Feb

Factory output may take a hit

On a year-on-year basis, however, these six core industries—crude, petroleum refinery products, coal, electricity, finished steel and cement—showed considerable growth in the month under review compared to a meagre 1.9 per cent last February.

After a consistent good showing since the past three months with a 6 per cent growth in November, 6.4 in December and 9.4 per cent in January, growth in the core sectors moderated in February. For the year-to-month period, these industries together clocked a growth of 5.3 per cent against 2.9 per cent in the previous fiscal, according to the official data released on Friday.

“Given these numbers, I think the IIP figures would come down and would be in the range of 10-11 per cent in the coming months” Crisil principal economist D K Joshi said.
HDFC Bank economist Jyotinder Kaur said, “we may see some kind of moderation in industrial growth...will finish the fiscal by 10 per cent growth in IIP.”

During the April-January period, electricity generation, cement output and steel production grew by 6.4 per cent, 10.6 per cent and 4.5 per cent against 2.4 per cent, 6.9 per cent and 1.9 per cent, respectively in the year-ago period.

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