Core sector output in the month of October rose to four-month high of 6.3 percent in October as compared to 1.9% in September primarily led by better output in coal, refinery products and electricity. 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). Its cumulative growth during April to October, 2014-15 was recorded at 4.3% as against 4.2% growth in the same period of 2013-14.
Among core sectors, Electricity generation having 10.32% weight in IIP index registered a growth of 13.2% in October, 2014 over the same month of corresponding period. During April to October 2014-15, it recorded a growth of 10.5% over the corresponding period of previous year. Coal production with weightage of 4.38% in index increased by 16.2% in October, 2014 over the same period of corresponding period. On cumulative basis, coal production growth during April-October, 2014-15 increased by 8.5% compared to April-October, 2013-14. Crude oil and Petroleum Refinery Products, with weightage of 5.22% and 5.94% in index increased by 1.0% and 4.2% in October, 2014 over October, 2013. However, in cumulative terms, Crude oil and Petroleum Refinery Products declined by 0.9% and 1.7% during April-October 2014-15. Steel production with weight of 6.68% in IIP index, increased by 2.3% in October, 2014 over October, 2013. While, its cumulative index during April to October, 2014-15 increased by 2.3% over the corresponding period of previous year.
On the flip side, Cement sector having weightage of 2.41% respectively in IIP index, registered a contraction of 1.0% respectively, in the month under review over October 2013. However, in cumulative terms, Cement production recorded a growth of 8.1% during April-October 2014-15. Natural Gas production having weightage 1.71% in IIP index declined by 4.2% in October 2014 as compared to the month in October, 2013. The cumulative index for Natural Gas production during April-October 2014-15 declined by 5.6% over corresponding period of previous year. Fertilizer production with weightage of 1.25% in IIP index declined 7.6% in October, 2014 over October, 2013. The cumulative index of Fertilizer production during April-October 2014-15 declined by 1.1 % over the corresponding period of previous year.
The significant growth in core industries output is a positive news ahead of the RBI's monetary policy. The latest data comes on the heels of second quarter GDP data showing economic expansion of 5.3%, compared with a nine-quarter high of 5.7% in the previous quarter, and the continued weakness of the manufacturing industry.
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