The growth in eight core sectors dipped to a 17-month low in February at 1.4%. India’s infrastructure output growth has been showing a continuous decline since December, reflecting stagnation in the space. The combined Index of Eight Core Industries stood at 161.5 in February, 2015, which was 1.4% higher compared to the index of February, 2014 and compared to 1.8% in January. Its cumulative growth during April to February, 2014-15 was 3.8%.
The core infrastructure industries of coal, crude oil, oil refining, natural gas, steel, cement, electricity and fertilizers which accounts for 37.9 per cent of the industrial output was mainly impacted by the contraction of output in five industries - crude oil, natural gas, refinery products, fertilisers and steel.
Crude Oil production having weight of 5.22 % declined by 1.9% in February, 2015 over February, 2014. The cumulative index of Crude Oil during April to February, 2014-15 declined by 1.1 % over the corresponding period of previous year. The Natural Gas production having weight of 1.71 % declined by 8.1 % in February, 2015. Its cumulative index during April to February, 2014-15 declined by 5.5% over the corresponding period of previous year. Petroleum Refinery production having weight of 5.94% declined by 1.0% in February 2015. Its cumulative index during April to February, 2014-15 increased by 0.5% over the corresponding period of previous year. Steel production having weight of 6.68% declined by 4.4 % in February, 2015, though its cumulative index during April to February, 2014-15 increased by 1.1% over the corresponding period of previous year.
On the other hand, Coal production having weight of 4.38 % increased by 11.6 % in February, 2015 over February, 2014. Its cumulative index during April to February, 2014-15 increased by 8.5% over corresponding period of previous year. Cement production having weight of 2.41% increased by 2.7% in February, 2015. Its cumulative growth during April to February, 2014-15 was 6.1 % over the corresponding period of previous year. Electricity generation having weight of 10.32% increased by 5.2 % in February, 2015, registering a cumulative growth of 8.6 % during April to February, 2014-15 over the corresponding period of previous year.