Core sector industrial production grows at 2.6% in August

Core sector industrial production in the country expanded at 2.6 per cent in August, picking up from a low 1.1 per cent in July. The August 2015 expansion was, however, marginally slower than the 2.7 per cent growth in August 2014.

Core sector output growth, which gained momentum in May posting positive growth after registering negative growth in the previous months of March and April 2015, has again started showing signs of deceleration since July.

The eight core sector industries comprising coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity, which carry nearly 38 per cent of the weight of items included in the Index of Industrial Production (IIP), had expanded at a rate of 2.2 per cent in April-August this year.

Coal production, which has a weight of 4.38 per cent in the IIP, increased by 0.4 per cent in August 2015. Cumulative production of coal during April-August 2015-16 increased by 4.6 per cent.

Production of crude oil, (weight of 5.22 per cent in IIP) increased by 5.6 per cent in August 2015 while cumulative production during April-August 2015-16 increased by 0.5 per cent.

Natural gas production (weight of 1.71 per cent in IIP) increased by 3.7 per cent in August 2015. Cumulative production of natural gas during April-August 2015-16 declined by 2.7 per cent.

Petroleum refinery production (weight of 5.94 per cent) increased by 5.8 per cent in August 2015 while cumulative production during April-August 2015-16 increased by 4.3 per cent.

Fertilizer production (weight of 1.25 per cent in IIP) increased by 12.6 per cent in August 2015. Cumulative production of fertilisers during April-August 2015-16 increased by 5.9 per cent.

Steel production (weight of 6.68 per cent in IIP) declined by 5.9 per cent in August 2015. Cumulative production of steel during April-August 2015-16 declined by 0.03 per cent over the corresponding period of the previous year.

Cement production (weight of 2.41 per cent in IP) increased by 5.4 per cent in August 2015 while its cumulative production during April-August 2015-16 increased by 1.8 per cent year-on-year.

Electricity generation (weight of 10.32 per cent in IIP) increased by 5.6 per cent in August 2015. Cumulative production during April-August 2015-16 increased by 2.8 per cent.