Core sector growth fails to break above 2.2 per cent in April

Core sector industrial production in the country continued its slow pace in April 2012, growing at 2.2 per cent, unchanged from its growth rate in March 2012, the final month of the previous financial year, showing clear signs of a slowdown in the Indian economy.

Core sector industrial production had grown 4.2 per cent in April 2011.

The eight core sector industries comprising coal, crude oil, natural gas, petroleum refinery products, fertilisers, steel, cement and electricity recorded a combined growth of 2.2 per cent in April on account of sharp dip in output of natural gas and fertilisers.

The index of production in the eight core sector industries, having a combined weight of 37.90 per cent in the index of industrial production (IIP), stood at 142.3 in April  2012, up 2.2 per cent from its April 2011 level.

Core sector production had grown 4.2 per cent in April 2011 while the cumulative growth for fiscal 2011-12 was 4.4 per cent against the growth rate of 6.6 per cent during 2010-11.

Coal production (having a weight of 4.38 per cent in IIP) grew at 3.8 per cent in April 2012 against a growth of 2.7 per cent in April 2011. Coal production grew 1.2 per cent during 2011-12 compared to (-) 0.2 per cent growth during 2010-11.