HEADLINES:
September 15 2019
Core sector posts healthy 6.8 % growth in February
30 March 2012

Marking a sharp recovery, the eight core infrastructure industries appear to be getting back on the high growth track with a robust 6.8 per cent expansion in output in February this year as compared to a dismal increase of 0.5 per cent witnessed just a month ago.

Official data on the core industries, released here on Thursday, show that the recovery in overall performance during the month — on the back of a 6.4 per cent growth achieved in February, 2011 — has been possible owing to a healthy increase in output of three key sectors, namely, coal, power and cement.

Considering that the eight infrastructure industries — crude oil, petroleum refinery products, natural gas, fertilisers, coal, electricity, cement and finished steel — account for a weight of 37.90 per cent in the IIP (Index of Industrial Production), the overall industrial growth during February, 2012, can be expected to be significantly better.

As per the data, generation of electricity and production of coal and cement increased by 8 per cent, 17.8 per cent and 10.8 per cent, respectively, in February this year. During the same month of 2011, while electricity generation and cement output had gone up by 7.2 per cent and 6.5 per cent, respectively, production of coal had contracted by 5.8 per cent.

The other five core industries showed a mixed trend. Crude oil production went up by a mere 0.4 per cent in February as compared to a robust increase of 12.2 per cent in the same month last year. However, the output of petroleum refinery products grew by 6.2 per cent as against 3.2 per cent in the year-ago period. While natural gas output contracted by 7.6 per cent, fertiliser and steel production increased by 4.1 per cent and 4.3 per cent in February as against 4.8 per cent and 18.5 per cent, respectively, in the same month last year.

Following the improved performance in February, the cumulative growth in core industries during the April-February period this fiscal increased marginally to 4.4 per cent.

 

 

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