Confirming a slow-down in economy, growth in the eight core industries, which occupies 37.9% of weightage in the overall Index of Industrial Production (IIP), slipped to 3.6% in June as against 3.8% in May and 5.6% in the same month last year, weighed down by contraction in natural gas, fertilizer and steel output.
The cumulative expansion of these industries in April-June 2012, namely crude oil, petroleum refinery products, natural gas, fertilisers, coal, electricity, cement and finished steel, slowed to 3.6% from 5.2% during the corresponding period in 2011-12. However, May reading was marginally revised upwards to 4% from the previously reported 3.8% expansion.
Natural Gas and Fertilizer, which occupies 1.71% and 1.25% weightage in the index, have been the worst performing sectors with production contracting by 11.1% and 11.7% in June, respectively compared to contraction of 11.7% and 2.4% respectively in June 2011. Crude oil production, with a weight of 5.22% registered a negative growth of 0.8% in June compared to its growth of 7.7% in corresponding period of the last year. Similarly, steel production with weight of 6.68%, had a negative growth of 0.5% in the month under review against its 14.5% growth in June 2011.
On the flip side, coal production, with a weight of 4.38% in the index, registered a growth of 7.2% in June 2012 compared to contraction of 3% in the same month last year. Petroleum refinery production (weight: 5.94%) and cement production (weight: 2.41%) grew by 6.1% and 10.02% for the month under review, as compared to growth figure of 4.6% and 1.7% in the same month last year. Lastly, electricity generation (weight: 10.32%) had 8.1% growth for the month compared to its 7.9% growth in the same month last year.
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