Core sector growth rises to 4.9% in August

A worker uses a gas cutter at a metal workshop in an industrial area in Mumbai, India, February 10, 2017. REUTERS/Danish Siddiqui - RTX30FXQ

Eight core sectors grew by 4.9 percent in August, the highest growth rate since April, on account of robust performance of coal, natural gas and electricity segments, official data showed today.

These eight infrastructure sectors -- coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity -- had witnessed 3.1 percent expansion in August last year. The infrastructure growth was 2.6 percent in the previous month of July

The production of coal, natural gas and electricity rose by 15.3 percent, 4.2 percent and 10.3 percent, according to the official data released today.

However crude oil, fertiliser and cement recorded negative growth in the month under review.

The production growth of refinery products and steel slowed down to 2.4 percent and 3 percent in August as against 2.5 percent and 16.7 percent respectively in the same month last year.

Cumulatively, the eight core sectors in April-August recorded a growth rate of 3 percent as against 5.4 percent in the same period a year ago.

Healthy growth in key sectors would have positive implications on the Index of Industrial Production (IIP) as these segments account for about 41 percent to the total factory output.