Core sector production grows at 2.1 per cent in August

Core sector industrial production in the country expanded at 2.1 per cent in August, showing a modest increase from the slow pace of 1.8 per cent reported in July, but slower than the 3.8 per cent growth recorded in August last year.

The eight core sector industries comprising coal, crude oil, natural gas, petroleum refinery products, fertilisers, steel, cement and electricity recorded a combined growth of 2.1 per cent in August 2012.

The combined index of the eight core sector industries, which have a combined weight of 37.90 per cent in the general index of industrial production (IIP) stood at 143.1 in August 2012.

The moderation in growth was on account of the negative growths in the production of natural gas, cement, fertilizers and crude oil, besides a decline in the growth rates of steel and electricity production.

For the first five months of the financial year (April-August 2012-13), the core sector industries grew at 2.8 per cent against their growth of 5.5 per cent during the corresponding period of the previous financial year.

Production of coal (having a weight of 4.38 per cent) recorded a growth of 11.0 per cent in August 2012 compared to its negative growth of (-) 15.2 per cent in August 2011. Cumulative production of coal stood at 6.3 per cent during April-August 2012-13 compared to its negative growth of (-) 2.3 per cent during the same period of 2011-12.