Core sector output growth hits a nine-month high of 7.3% in June

Core sector industrial production in the country grew at a faster pace of 7.3 per cent in June 2014, the fastest in nine months, showing signs of a rebound in industrial activity.

The core sector industries, comprising fertilisers, cement, steel, electricity, crude oil, coal, petroleum refinery products and natural gas, had registered a slow 2.3 per cent expansion in May this year.

The index of core sector production (Base: 2004-05=100) had barely expanded at 0.1 per cent in the May a year ago.

The fast pace of expansion in June this year reflected an 8.1 per cent increase in coal production, a 13.6 per cent increase in cement output and a 15.7 per cent jump in electricity generation during the month.

The eight core sector industries, having a combined weight of 37.90 per cent in the general index of industrial production (IIP), recorded a growth of 4.6 per cent during the April-June 2014-15 period. 

Coal production, which has a weight of 4.38 per cent in the IIP, increased by 8.1 per cent in June 2014 over June 2013.

Cumulative production of coal during April-June 2014-15 increased by 5.6 per cent over the corresponding period of the previous year.

Crude oil production (weight of 5.22 per cent in IIP) increased by 0.1 per cent in June 2014 over June 2013. Cumulative production of crude oil during April-June, 2014-15 declined by 0.1 per cent over the corresponding period of the previous year.

Natural gas production (weight of 1.71 per cent in IIP) declined by 1.7 per cent in June 2014 over June 2013. Cumulative production of natural gas during April-June 2014-15 declined by 3.9 per cent over the corresponding period of the previous year.

Petroleum refinery production (weight of 5.94 per cent in IIP) increased by 1.2 per cent in June 2014 over June 2013. Cumulative production at refineries during April-June 2014-15 declined by 1.1 per cent over the corresponding period of the previous year.

Fertiliser production (weight of 1.25 per cent in IIP) declined by 1.0 per cent in June 2014 over June 2013. It registered a cumulative growth of 8.6 per cent during April-June 2014-15 over the corresponding period of the previous year.

Steel production (weight of 6.68 per cent in IIP) increased by 4.2 per cent in June 2014 over June 2013. Cumulative production of steel during April-June 2014-15 increased by 1.6 per cent over the corresponding period of the previous year.

Cement production (weight of 2.41 per cent in IIP) increased by 13.6 per cent in June 2014 over June 2013. Its cumulative growth during April-June 2014-15 was 9.5 per cent over the corresponding period of previous year.

Electricity generation (weight of 10.32 per cent) increased by 15.7 per cent in June 2014 over June 2013 and recorded a cumulative growth of 10.9 per cent during April-June 2014-15 over the corresponding period of the previous year.