SME Times News Bureau | 02 Aug, 2012
Growth of eight core sectors slipped to 3.6 percent in June
against 5.6 percent in the same month last year, according to official figures
released Wednesday.
"The core sector numbers are very poor. It will have
its effect on IIP as well," Principal Economist D K Joshi said.
The eight industries include crude oil, petroleum refinery
products, coal, electricity, cement and finished steel and have a weight of
37.9 percent in the overall Index of Industrial Production (IIP).
Natural gas and crude oil production contracted by 11.1 percent
and 0.8 percent respectively during June.
Steel and fertiliser production shrunk by 0.5 percent and
11.7 percent respectively during the month.
However, coal and petroleum refinery output grew by 7.2 percent,
10.2 percent and 6.1 percent respectively.
Cement production registered a growth of 10.2% in June 2012
against its 1.7% growth in June 2011.
Core sector growth in May too moderated to 4 percent, from
5.9 percent in the same month last year.
Hit hard by global woes and domestic problems, India's
economic growth rate slowed to nine-year low, both in the March quarter at 5.3 percent,
as well as for the 2011-12 fiscal at 6.5 percent, prompting the industry to
demand immediate and bold action to arrest slowdown.