Core sector growth moves up to 4.6 per cent in May

Core sector industrial production in the country grew at over double the pace at 4.6 per cent in May 2012, up from the 2.2 per cent growth recorded in April, the first month of the current financial year, showing signs that all is not bad with the economy.

Core sector industrial production had grown at a higher pace of 5.8 per cent in May 2011.

The eight core sector industries comprising coal, crude oil, natural gas, petroleum refinery products, fertilisers, steel, cement and electricity recorded a combined growth of 4.6 per cent in May 2012, gaining from a sharp 22.1 per cent rise in cement production and an 8 per cent growth in coal and steel production.

The index of production of the eight core industries having a combined weight of 37.90 per cent in the general index of industrial production (IIP), stood at 150.9 in May 2012, showing a growth of 4.6 per cent, against a growth of 5.8 per cent in May 2011. 

During April-May 2012-13, the core sector industries recorded a cumulative growth of 4.2 per cent in the first two months of the current financial year (April-May 2012-13) against the 5.0 per cent growth recorded in the corresponding period of the previous fiscal.

Coal production (having a weight of 4.38 per cent in IIP) recorded a higher growth of 8.0 per cent in May 2012, compared to its growth of 1.3 per cent in May 2011. Cumulative production of coal stood at 5.9 per cent during April-May this year against 2.0 per cent in the similar period of the previous year (2011-12).