Core sector output growth slackens further to 1.8% in January

news
02 March 2015

Core sector industrial production in the country expanded at an even slower pace of 1.8 per cent in January against a 2.4-per cent growth in December and the tepid 6.7-per cent expansion in November.

The index of core sector production fell on the back of a big decline in the production of crude oil and natural gas, which registered declines of 2.3 per cent and 6.6 per cent, respectively.

The eight core sector industries, comprising coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity had grown at an even slower pace of 1.6 per cent in January last year.

The index of the eight core sector industries (Base: 2004-05=100), which has a weight of nearly 38 per cent in the general index of industrial production (IIP), had shown a cumulative growth of 4.1 per cent during April-January 2014-15.

Coal production, which has a weight of 4.38 per cent in the general index of industrial production (IIP), increased by 1.7 per cent in January 2015. Cumulative production of coal during April-January 2014-15 increased by 8.1 per cent compared to the corresponding period of the previous year.

Production of crude oil (weight of 5.22 per cent in IIP) declined by 2.3 per cent in January 2015 over January 2014. Cumulative production of crude oil during April-January 2014-15 declined by 1.0 per cent compared to the corresponding period of the previous year.

Natural gas production (weight of 1.71 per cent in IIP) declined by 6.6 per cent in January 2015. Cumulative production of natural gas during April-January 2014-15 declined by 5.2 per cent compared to the corresponding period of the previous year.

Petroleum refinery production (weight of 5.94 per cent in IIP) increased by 4.7 per cent in January 2015. Cumulative refinery throughput during April-January 2014-15 increased by 0.7 per cent from the corresponding period of the previous year.

Fertiliser production (weight of 1.25 per cent in IIP) increased by 7.1 per cent in January 2015. Cumulative production of fertilisers during April-January 2014-15 declined by 0.5 per cent compared to the corresponding period of the previous year.

Steel production (weight of 6.68 per cent in IIP) increased by 1.6 per cent in January 2015.

Cumulative production of steel during April-January 2014-15 increased by 1.6 per cent compared to the corresponding period of the previous year.

Electricity generation (weight of 10.32 per cent) increased by 2.7 per cent in January 2015 while cumulative growth in power generating capacity stood at 8.9 percent during April-January 2014-15.

Cement production (weight of 2.41 per cent in IIP) increased by 0.5 per cent in January 2015. Cumulative growth of cement production during April-January 2014-15 was 7.1 per cent.

The cement industry is now expected to grow 20-25 per cent over the next three decades, according to the department of industrial policy and promotion (DIPP) of the commerce ministry.

Cement industry has to grow at 20-25 per cent annually over the next three decades to meet the requirement of a rapidly growing Indian economy, DIPP secretary Amitabh Kant today told the 53rd annual session of the Cement Manufacturers' Association (CMA).





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