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Core sector industries’ output jumps to nine-month high at 7.3% in June

01 Aug 2014 Evaluate

Indicating signs of economic revival, core sector output in the month of June has surged to nine-month high at 7.3% mainly driven by healthy production growth in coal, crude oil, cement and electricity. The output of eight core industries grew by 2.3% in May and 1.2% in the same month of previous year. The eight industries - crude oil, petroleum refinery products, natural gas, fertilisers, coal, electricity, cement and finished steel - have a weight of 37.9% in the overall Index of Industrial Production (IIP).

Among core sectors, Electricity generation having 10.32% weight in index registered a growth of 15.7% in June, 2014 over the same month of corresponding period. During April to June 2014-15, it recorded a growth of 10.9% over the corresponding period of previous year. Coal production with weightage of 4.38% in index increased by 8.1% in June, 2014 over the same period of corresponding period. On cumulative basis, coal production growth during April-June, 2014-15 increased by 5.6% compared to April-June 2013-14.

Steel and Cement sectors having weightage of 6.68% and 2.41% respectively in IIP index, registered a growth of 4.2% and 13.6% respectively, in the month under review over June 2013. In cumulative terms, Steel and Cement production was recorded at 1.6 % and 9.5%  during April-June 2014-15. Crude oil, with weightage of 5.22% in index increased by 0.1% in June, 2014 over June, 2013, while its cumulative index during April- June 2014-15 declined by 0.1% over corresponding period of previous year. Further, Petroleum refinery production, representing 5.94% weight in IIP index rose by 1.2% in June, 2014 over June 2013. However, cumulative growth of Petroleum refinery production during April-June, 2014-15 declined by 1.1% over the corresponding period of previous year.

On the flip side, Natural Gas production having weightage 1.71% in IIP index declined by 1.7% in June 2014 as compared to the month in June, 2013. The cumulative index for Natural Gas production during April-June 2014-15 declined by 3.9% over corresponding period of previous year. Fertilizer production with weightage of 1.25% in IIP index declined 1.0% in June, 2014 over June, 2013. The cumulative index of Fertilizer production during April-June 2014-15 grew at 8.6% on YoY basis.

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