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Core Sector Growth Up 3.2% in September; Fastest in 4 Months

New Delhi: Growth in eight core sectors rose to 4-month high of 3.2 per cent in September because of sharp pick-up in fertiliser production and electricity generation.

The eight core industries — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity — comprising nearly 38 per cent of India’s total industrial production had grown at 2.6 per cent in the same month of last year.

The growth rate in September was highest since May when it was 4.4 per cent.

The cumulative growth rate in the April-September period, 2015-16, is now at 2.3 per cent, lower than 5.1 per cent the first six months of the last financial year.

As per data released by the Ministry of Commerce and Industry, fertiliser production increased by 18.1 per cent in September as compared to 12.59 per cent in August. It was
negative at (-)11.6 in same month of last fiscal.

Growth in electricity generation was at 10.8 per cent in September as compared to 3.9 per cent in the year-ago period. It had recorded 5.6 per cent growth in August.

The coal sector output expanded by a slower pace of 1.9 per cent in September this year as against 7.6 per cent in the same month last fiscal. However, it was higher than 0.4 per
cent in August.

The decline in steel production was (-)2.5 per cent as compared to (-)5.9 per cent in the previous month. The sector had shown a growth of 6.6 per cent in September 2014.

Crude oil segment declined (-)0.1 per cent in September while the sector had shown a healthy growth of 5.6 per cent in August. Growth in crude oil sector had also dipped in September 2014.

While natural growth production posted a growth on yearly basis, the growth in output was down on sequential basis.

Similarly, refinery production was better on yearly  basis, but there was dip on month-on-month basis.

The data further revealed cement production declined by 1.5 per cent in September as against a growth of 5.4 per cent in August. The segment had posted a growth of 3.7 per cent in September 2014-15.

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