Core sector output growth slows to 2.4% in December

Core sector industrial production in the country grew at a slower pace of 2.4 per cent in December against the five-month high growth rate of 6.7 per cent in November, on the back of declining production of crude oil and natural gas and a moderation in coal production and electricity generation.

Production of crude oil declined by 1.4 per cent in December 2014 compared to December 2013 while natural gas production declined by 3.5 per cent in December.

The eight core sector industries, comprising coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity had grown at a higher pace of 4.0 per cent in December last year.

The index of the eight core sector industries (Base: 2004-05=100), which has a weight of nearly 38 per cent in the general index of industrial production (IIP) had shown a cumulative growth of 4.4 per cent during April-December 2014-15.

Coal production, which has a weight of 4.38 per cent in the general index of industrial production (IIP), increased by 7.5 per cent in December 2014 over December 2013. Cumulative production of coal during April-December 2014-15 increased by 9.1 per cent over the corresponding period of the previous year.

Production of crude oil (weight of 5.22 per cent in IIP) declined by 1.4 per cent in December 2014 while cumulative production during April-December 2014-15 declined by 0.9 per cent over the corresponding period of previous year.

Natural gas production (weight of 1.71 per cent in IIP) declined by 3.5 per cent in December 2014 while cumulative production during April-December 2014-15 declined by 5.1 per cent over the corresponding period of the previous year.

Petroleum refinery production (weight of 5.94 per cent in IIP) increased by 6.1 per cent in December 2014 while cumulative index during April-December 2014-15 increased by 0.2 per cent over the corresponding period of the previous year.

Fertilizer production (weight of 1.25 per cent in IIP) declined by 1.6 per cent in December 2014 while cumulative index during April-December 2014-15 declined by 1.4 per cent over the corresponding period of the previous year.

Steel production (weight of 6.68 per cent in IIP) declined by 2.4 per cent in December 2014 while cumulative index during April-December 2014-15 increased by 1.6 per cent over the corresponding period of previous year.

Cement production (weight of 2.41 per cent in IIP) increased by 3.8 per cent in December 2014 while cumulative growth during April-December 2014-15 was 7.9 per cent over the corresponding period of previous year.

Electricity generation (weight of 10.32 per cent in IIP) increased by 3.7 per cent in December 2014 and recorded a cumulative growth of 9.7 per cent during April-December 2014-15 over the corresponding period of the previous year.