India's core sector grows at a slow 3.1 per cent in December
30 Jan 2012
Core sector industrial production in the country expanded at a slow pace of 3.1 per cent in December 2011 against a 6.8 per cent growth in the previous month and a 6.3 per cent growth recorded in December 2010.
The index of eight core sector industries having a combined weight of 37.90 per cent in the index of industrial production (IIP) stood at 147.30 in December 2011, against 141.1 in November 2011, showing a growth rate of 3.1 per cent.
Cumulative growth of the sector for the April-December 2011-12 period also was lower at 4.4 per cent against 5.7 per cent during the corresponding period of 2010-11.
The decline in core sector activity has been due mainly to a fall in the production of crude oil and natural gas.
Crude production fell 5.6 per cent in December 2011 against a 15.8 per cent growth in December 2010 while natural gas production fell 10.8 per cent in December 2011 against a 0.2 per cent decline in December 2010.
Coal production (having a weight of 4.38 per cent in the index of industrial production) grew 5.6 per cent in December 2011 against a growth of 3.8 per cent in December 2010. However, in cumulative terms coal production grew at a negative (-) 2.7 per cent during April-December 2011-12 compared to its 0.8 per cent growth during the same period of 2010-11.
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