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Core sector growth slows down to 2.3% in May’13

02 Jul 2013 Evaluate

Growth in the eight core industries' slowed down to 2.3% in May as against 7.2% in the same month of previous year, reflecting slowdown in the economy. Among the eight core sectors, representing 38% weight in the Index of Industrial Production (IIP), crude oil, coal, natural gas and fertilizer sectors recorded negative growth in their output, while the other sector showed expansion in May, however substantially slowed when compared with same month a year ago.

On the positive side, Petroleum refinery production, representing 5.94% weight in IIP index grew by 5.0% in May, 2013 compared to 23.4% in May, 2012.  Cumulative growth of Petroleum refinery production during April-May, 2013-14 was 5.3% as compared to 22.1% recorded in the same period of previous fiscal. Electricity generation having 10.32% weight in index registered a growth of 6.2% in May, 2013 compared to 5.9% growth in May, 2012. On a cumulative basis, Electricity generation during April- May, 2013-14 was 4.9 % as compared to 5.6% during April-  May 2012-13.

Similarly, Steel and Cement sectors having weight of 6.68% and 2.41% in IIP index, registered growth of 4.1% and 3.0% in month under review against 3.8% and 15.4% growth in same month previous year. In cumulative terms, steel production Steel production was 3.0 % both during April to May 2013-14 and during April to May 2012-13. While, the growth of cement production was 5.6% in April-May, 2013-14 against 13.9% during the same period of previous fiscal.

On the flip side, crude oil, with weightage of 5.22% in index registered a negative growth of 2.4% in May, 2013 as compared to 0.5% growth in May, 2012. Cumulative growth of Crude Oil production during April-May 2013-14 was negative at 1.8% compared to de-growth of 0.4% during April-May 2012-13. Natural gas and fertilizer, having weight of 1.71% and 1.25% in IIP index, also registered negative growth of 18.7% and 2.0% in month under review against a de-growth of 10.7% and 15.1% in same month previous year. On cumulative basis, natural gas and fertilizer production during April-May 2013-14 was also negative at 18.1% and 2.2% compared to de-growth  of 11.0% and 12.4% during April-May 2012-13.

Further, coal production with weight of 4.38% in index registered a negative growth of 3.3% in May, 2013 compared to its growth at 9.6% in May, 2012. However, on cumulative basis, growth during April-May, 2013-14 was negative at 0.1% as compared to 7.8% growth during April- May 2012-13.

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