Business Line reported that growth rate of 8 core sector industries declined to 1.8% in November, from 7.8% in the same month last year, due to drop in production of coal, natural gas and cement. The 8 core sector industries had registered eight month high growth of 6.5% in October 2012.
According to the official data, the decline in growth in November 2012 was due to negative growth witnessed in coal, natural gas and cements sectors and drop in growth rates of electricity, steel and petroleum refinery products.
The cumulative expansion of the eight industries crude oil, natural gas, cement, coal, electricity, steel, petroleum refinery products and fertilizers was down at 3.5% in April to November 2012 against 4.8% in the same period last year. The eight industries have a weight of 37.9% in the overall Index of Industrial Production.
8 core industries output grew 1.8% in November, lower than the 6.6% growth recorded in the previous month and 7.8% increase in November 2011.
The overall output growth performance was weighed down by decline in output of coal, natural gas and cement. Deceleration in growth rates of electricity, steel and petroleum products also impacted overall performance.
Industry said that this has cast a shadow over the IIP numbers for November, which are expected in mid January. Clearly, the industrial output growth for November will be much lower than the heady heights of 8.2% recorded in October.
The 8 core industries coal, crude oil, natural gas, petroleum refinery products, steel, cement and electricity have a weight age of 37.90% in the index of industrial production.
Official data said that for the April to November 2012 period, the cumulative growth rate stood at 3.5%, lower than the 4.8% growth seen in the same period last year.
While steel production grew 6% in November, fertilizer production saw growth of 5%.
Source:
http://www.steelguru.com/indian_news/The_8_core_sector_industries_registered_in_October_2012/297014.html
