Core sector output growth lags at 2.7% in July

Core sector industrial production in the country grew at a slow pace of 2.7 per cent in July 2014 against the tepid 7.3 per cent growth recorded in the previous month, showing signs of some moderation in industrial activity.

The core sector industries, comprising fertiliser, cement, steel, electricity, crude oil, coal, petroleum refinery products and natural gas, had recorded growth of 3.1 per cent in July last year.

The index of core sector production (Base: 2004-05=100) stood at 163.9 in July 2014, showing an expansion of 2.7 per cent over the index of July 2013, provisional data released on Monday showed.

Industrial production slowed in the face of slack growth in coal production and electricity generation, the continued negative growth in the production of crude oil and natural gas and a reduction in refinery throughput and fertiliser in July 2014.

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 4.1 per cent during the April-July 2014-15 period.

• Coal production, which has a weight of 4.38 per cent in the IIP, increased by 6.2 per cent in July 2014 against the 8.1 per cent growth recorded in June 2014. Cumulative production of coal during April-July 2014-15 was up 5.7 per cent over the corresponding period of the previous year.
• Production of crude oil (weight of 5.22 per cent in IIP) declined by 1.0 per cent in July 2014, while cumulative production during April-July 2014-15 declined by 0.3 per cent over the corresponding period of the previous year.
• Production of natural gas (weight of 1.71 per cent in IIP) declined by 9.0 per cent in July 2014, while cumulative production during April-July 2014-15 declined by 5.2 per cent year-on-year.
• Petroleum refinery production (weight of 5.94 per cent in IIP) declined by 5.5 per cent in July 2014 over July 2013, while cumulative production during April-July 2014-15 was down 2.2 per cent compared to the corresponding period of the previous year.
• Fertiliser production (weight of 1.25 per cent in IIP) declined by 4.2 per cent in July 2014 and recorded a cumulative growth of 4.9 per cent during April-July 2014-15 over the corresponding period of the previous year.
• Steel production (weight of 6.68 per cent in IIP) decreased by 3.4 per cent in July 2014, while cumulative production during April-July 2014-15 increased by 0.3 per cent year-on-year.
• Cement production (weight of 2.41 per cent in IIP) increased by 16.5 per cent in July 2014 and recorded a cumulative growth of 11.1 per cent during April-July 2014-15 compared to the corresponding period of the previous year.
• Electricity generation (weight of 10.32 per cent in IIP) increased by 11.2 per cent in July 2014 and recorded a cumulative growth of 11 per cent during April-July 2014-15 compared to the corresponding period of the previous year.