Core sector expansion slows to 2.3% in May

Core sector industrial production in the country grew at a lower pace of 2.3 per cent in May 2014 against a higher 4.2 per cent expansion recorded in the previous month, ie, April 2014, the first month of the current fiscal (See: Core sector output grows faster at 4.2% in April).

The index of core sector production (Base: 2004-05=100) had expanded at a higher pace of 5.9 per cent in the May a year ago.

The slow pace of expansion in May this year reflected the decline in production of crude oil, natural gas, petroleum and steel, as per government data released today.

The eight core sector industries comprising fertilisers, cement, steel, electricity, crude oil, coal, petroleum refinery products and natural gas, having a combined weight of 37.90 per cent in the general index of industrial production (IIP), recorded a growth of 3.3 per cent during the April-March 2013-14 period.

Coal production (having a weight of 4.38 per cent in IIP) increased by 5.5 per cent in May 2014 while cumulative production during April-May 2014-15 increased by 4.4 per cent over corresponding period of previous year.

Production of crude oil (weight of 5.22 per cent in IIP) declined by 0.3 per cent in May 2014 while cumulative production of crude oil during April-May 2014-15 declined by 0.2 per cent year-on-year.

Natural Gas production (weight of 1.71 per cent in IIP) declined by 2.2 per cent in May 2014 while cumulative production during April-2014-15 declined by 5 per cent over the corresponding period of the previous year.

Petroleum refinery production (weight of 5.94 per cent in IIP) declined by 2.3 per cent in May 2014 while cumulative production during April-May 2014-15 declined by 2.2 per cent over the corresponding period of previous year.

Fertiliser production (weight of 1.25 per cent in IIP) increased by 17.6 per cent in May 2014 while it recorded a cumulative growth of 14.5 per cent during April-May 2014-15 year-on-year.

Steel production (weight of 6.68 per cent in IIP) declined by 2 per cent in May 2014 while cumulative production during April-May 2014-15 increased by 0.3 per cent over the corresponding period of the previous year.

Cement production (weight of 2.41 per cent) increased by 8.7 per cent in May 2014 while cumulative growth during April-May 2014-15 stood at 7.7 per cent.

Electricity generation (weight of 10.32 per cent in IIP) increased by 6.3 per cent in May 2014 and a cumulative growth of 8.7 per cent during April-May 2014-15.