Core sector growth falls to 1.1 pc in July

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SME Times News Bureau | 01 Sep, 2015
A major index for select factory output slowed to 1.1 percent growth in July from an increase of 3 percent in the previous month, mainly due to a fall in steel production and marginal growth in coal.

The select factory output index rose by 4.1 percent in July 2014.

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

The index's cumulative growth during April to July 2015-16 stood at 2.1 percent, as compared to 5.5 percent at April-July 2014-15.

Electricity generation, commanding the highest weightage at 10.32 percent, rose robustly by 3.5 percent in July 2015, while steel production, the second most important component as per weightage, contracted 2.6 percent in July, compared to a 4.9 percent rise in June.

Production of refinery products, the third most important component as per weightage of 5.93 percent, was higher by 2.9 percent last month.

However, crude oil, which has a 5.21 percent weightage in ECI, inched lower by 0.4 percent during the month under review in comparison to the data for July 2014.

Coal, with a 4.38 percent weightage, increased marginally by 0.3 percent, compared to a 6.3 percent rise in June this year.

Cement production, having a weightage of 2.41 percent, was up by 1.3 percent during the last month.

The sub-index for fertilisers which has a weightage of 1.25 percent rose by 8.6 percent.

However, production of natural gas, having a weightage of 1.71 percent, was lower by 4.4 percent in the month under consideration.