Core sector bounces back with 8% growth in September

Core sector industrial production in the country expanded at a faster pace of 8.0 per cent in September, showing signs that the government's fast-tracking of infrastructure projects are progressing well.

India's core sector production had expanded at 3.7 per cent in August 2013, up from the 3.1 per cent growth recorded in the previous month.

The eight core sector industries comprising coal, crude oil, natural gas, petroleum refinery products, fertilisers, steel, cement and electricity recorded production growth of 8.0 per cent in September 2013.

The index of core sector industries (base 2004-05=100), having a weight of 37.90 per cent in the general index of industrial production (IIP), stood at 156.2 in September 2013, which was 8.0 per cent higher compared to the index of September 2012.

The improvement in core sector production was mainly due to significantly high production across all sectors except crude petroleum and natural gas.

Coal production, which has a weight of 4.38 per cent in IIP, increased by 12.5 per cent year-on-year in September 2013. Cumulative production of coal during April-September 2013-14 increased by 2.3 per cent over the corresponding period of the previous year.

Crude oil production (weight of 5.22 per cent in IIP) increased by 0.6 per cent in September 2013. However cumulative production during April-September 2013-14 moderated by 1.3 per cent over the corresponding period of the previous year.

Natural gas production (weight of 1.71 per cent in IIP) declined by 14.1 per cent in September 2013. Cumulative production of natural gas during April-September 2013-14 declined by 16.5 per cent over the corresponding period of the previous year.

Petroleum refinery production (weight of 5.94 per cent in IIP) recorded a growth of 8.0 per cent in September 2013 over September 2012 while cumulative growth of refinery production during April-September 2013-14 was 5.3 per cent year-on-year.

Fertiliser production (weight of 1.25 per cent in IIP) grew 5.3 per cent in September 2013 over September 2012 and recorded a cumulative growth of 2.5 per cent during April-September 2013-14 over the corresponding period of the previous year.

Steel production (weight of 6.68 per cent in IIP) recorded a growth of 6.6 per cent in September 2013 over September 2012. Cumulative growth of steel production during April-September 2013-14 was 4.5 per cent year-on-year.

Cement production (weight of 2.41 per cent in IIP) increased by 11.5 per cent in September 2013 over September 2012 and its cumulative growth during April-September 2013-14 was 4.5 per cent over the corresponding period of the previous year.

Electricity generation (weight of 10.32 per cent in IIP) increased by 12.6 per cent growth in September 2013 over September 2012 while cumulative growth stood at 5.4 per cent during April-September 2013-14 over the corresponding period of the previous year.