Six core sectors clock mere 3.4% growth in June

 The decline in the growth rate in the six core industries—steel, coal, crude oil, petroleum refinery products, cement and electricity—is primarily due to sharp slide in coal, electricity and cement output.

These six core industries have a combined weight of 27 per cent in the Index of Industrial Production (IIP), which measures the growth rate in the industrial sector.

In July 2008 when the economy started feeling the impact of global slowdown the six core industries grew by 3.2 per cent. The six core industries posted a growth rate of 5 per cent and 6.3 percent in May and June this year respectively.

During April-June 2010-11, six core industries registered a growth of 4.6 per cent as against 4.3 per cent during the corresponding period of the previous year. Crude oil production with a weight of 4.17 per cent in the IIP registered a growth of 6.8 per cent in June 2010 compared to a growth rate of 4 per cent in same month last year.

Petroleum refinery production with a weight of 2 per cent in the IIP posted a growth of 2.9 per cent in June compared to negative growth rate of 3.8 per cent in the same month last year.  It posted a growth of 5.3 per cent during April-June 2010-11 compared to negative 4.2 during the same period of 2009-10. Growth rate of coal production dropped sharply to 0.9 per cent in June from high of 15.2 per cent in same month last year.

Electricity generation with a weight of 10.17 per cent in the IIP posted a  growth of 3.4 per cent in June compared to a growth rate of 7.7 per cent in June last year.

Cement production with a weight of 1.99 per cent in the IIP dropped to 3.6 per cent in June compared to 12.7 per cent in same month last year.

Finished (carbon) steel production with a weight of 5.13 per cent in the IIP posted a growth of 3.5 per cent in June compared to 3.6 per cent in June last year.