Core sector growth at 3-mth low of 4.8%
NEW DELHI: Core sector grew 4.8% in Aug, compared with 6.2% a year ago, official data released on Monday showed. Sequentially, the growth marked a slowdown from a downwardly revised figure of 5% in July and was at three-month low.
Output in the energy dominant industries like natural gas (-4.9%), coal (-3.8%) and crude oil (-3.6%), barring the refinery products (2.6%), saw sequential contraction, reflecting the impact of the prolonged conflict in West Asia.
On the other hand, output in the infrastructure dominant industries like steel (3.4%), cement (12.5%) and electricity (11.6%) showed positive growth in Aug.
Output in the newly added iron ore industry decelerated (5.5%) during the month, while fertiliser output (-12.4%) contracted for the sixth consecutive month.
Bank of Baroda chief economist Madan Sabnavis said higher growth in refinery products is due to exports and domestic consumption, while fertiliser production is down as sowing season slows and imports increase.
The eight core sectors constitute 40.3% of the Index of Industrial Production (IIP), which measures output in the country's industrial sector, and is considered a bellwether for the latter's performance.
Output in the energy dominant industries like natural gas (-4.9%), coal (-3.8%) and crude oil (-3.6%), barring the refinery products (2.6%), saw sequential contraction, reflecting the impact of the prolonged conflict in West Asia.
On the other hand, output in the infrastructure dominant industries like steel (3.4%), cement (12.5%) and electricity (11.6%) showed positive growth in Aug.
Output in the newly added iron ore industry decelerated (5.5%) during the month, while fertiliser output (-12.4%) contracted for the sixth consecutive month.
Bank of Baroda chief economist Madan Sabnavis said higher growth in refinery products is due to exports and domestic consumption, while fertiliser production is down as sowing season slows and imports increase.
The eight core sectors constitute 40.3% of the Index of Industrial Production (IIP), which measures output in the country's industrial sector, and is considered a bellwether for the latter's performance.
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