Core sector's industrial output grows marginally in October

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SME Times News Bureau | 01 Dec, 2015
A select industrial output index for October showed a marginal growth for the country's eight core industries (ECI) on Monday.

The ECI showed a marginal growth on a month-on-month basis of 3.2 percent in October. The select industrial output data showed a similar 3.2 percent growth in September too from an increase of 2.6 percent in August.

Nevertheless, the select factory output index for October was much lower than the growth of nine percent achieved during the corresponding month of 2014.

The data on the select factory output was furnished by the commerce and industry ministry. The ECI comprises 38 percent of the total weightage of items included in the Index of Industrial Production (IIP).

The index's cumulative growth from April to October 2015-16 stood at 2.5 percent, as compared to 5.6 percent during the corresponding period of 2014-15.

Out of the eight core industries -- fertilisers, cement, electricity and coal reported healthy output numbers. However, production of refinery products, crude oil, natural gas and steel dwindled in the period under review.

Electricity generation, which commands the highest weightage at 10.32 percent in the IIP, rose by 8.8 percent during the month under review, whereas steel production, the second most important component as per weightage, contracted by 1.2 percent.

Distilling of refinery products, the third most important component as per weightage, declined by 4.4 percent in October.

Extraction of crude oil, which has a 5.21 percent weightage in IIP, fell by 2.1 percent during the month under review in comparison to the data for October 2014.

Coal mining, that has a 4.38 percent weightage, increased by 6.3 percent. Cement manufacturing, having a weightage of 2.41 percent, was higher by 11.7 percent during the last month.

The sub-index for natural gas output, having a weightage of 1.71 percent, slipped by 1.8 percent in the month under consideration.

The fertilisers manufacturing which has a weightage of only 1.25 percent rose exponentially by 16.2 percent.