Core industry growth slows to 0.5% in January

In a poor performance, the eight core industries grew by 0.5 percent in January mainly due to slackening output of crude oil, steel, natural gas and petroleum refinery products.

The eight core industries, which include coal, cement, fertilisers and electricity, had recorded a growth rate of 6.4 percent in January 2011.

During December 2011, the core sectors recorded a growth of 3.1 percent against 6.3 percent same period previous year.

For the April-January this fiscal, the growth was lower at 4.1 percent compared to 5.7 percent in the corresponding period of 2010-11 in wake of deceleration in investment.

The eight industries together contribute 37.9 percent in the overall Index of Industrial Production (IIP).

As per the data released by Commerce and Industry Ministry, crude oil production contracted by 2 percent in January 2012 against 10.8 per cent in the same month last year.

Natural gas production too contracted by 8.9 percent against (-) 6.3 percent year-on-year.

In January, the petroleum refinery output contracted to 4.6 percent from 8.7 percent and steel production declined by (-) 2.9 percent from 8.7 percent.

On the other hand, coal output went up by 7.5 percent from (-) 1.3 percent year-on-year.

Fertilisers segment expanded by 4 per cent from 5.9 percent, cement by 10.6 percent from 1.8 percent and electricity by 2.4 percent from 9.7 percent.

PTI