India's core sector output slackens further to 2.3 per cent in September

Core sector industrial production in the country declined further to 2.3 per cent in September 2011 from the previous month's low of 3.5 per cent, showing signs of a further weakening of the economy.

The growth rate was also slower than that in September 2010 when the core sector industries had grown 3.3 per cent.

The index of eight core sector industries having a combined weight of 37.90 per cent in the index of industrial production (IIP) stood at 131.50 in September 2011, showing a growth rate of 2.3 per cent year-on-year.

During April-September 2011-12, the six core sector industries comprising coal, crude oil, natural gas, petroleum and refinery products, fertiliser, steel, cement and electricity, recorded a cumulative growth of 4.9 per cent against a growth of 5.6 per cent during the corresponding period in 2010-11.

Coal production, having a weight of 4.38 per cent in the IIP, registered a negative growth of (-) 17.8 per cent in September 2011 against its growth of (-) 1.8 per cent in September 2010. Coal production grew (-) 4.8 per cent during April-September 2011-12 compared to its growth at 0.2 per cent during the same period of 2010-11. 

Production of crude oil (weight of 5.22 per cent in IIP) grew 0.1 per cent in September 2011 against a growth of 12.5 per cent in September 2010. Crude oil production grew 5.1 per cent during April-September 2011-12 against a growth of 10.2 per cent during the same period of 2010-11.