Growth in the eight core infrastructure sectors in the country slowed to 2.8 per cent in May 2016 (year-on-year) after posting a record increase the previous month as production of crude oil and natural oil declined. There was also a sharp deceleration in petroleum refinery production.

The core sectors – coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity – had recorded a growth of 8.5 per cent in April 2016.

The cumulative growth of the sectors, which account for about 38 per cent of the country’s industrial production, was 5.5 per cent in the April-May 2016 period, according to an official release.

Coal production increased by 5.5 per cent in May, 2016 while the fertiliser sector posted a growth of 14.8 per cent. Petroleum refinery production, cement and steel registered lower growth rates of 1.2 per cent, 2.4 per cent and 3.2 per cent respectively. Electricity generation increased by 4.6 per cent in May 2016.

Crude oil and natural gas registered a decline in output at 3.3 per cent and 6.9 per cent respectively.

In the April-May 2016 period, increase in coal production was 2.3 per cent and steel production was 4.6 per cent. Petroleum refinery, fertiliser, electricity and cement registered growth of 9 per cent, 11.6 per cent, 9.4 per cent and 3.4 per cent respectively.

Production of natural gas in the first three months of fiscal 2015-16 fell 6.9 per cent. The fall in crude oil production in the same period was 2.8 per cent.

PTI adds: Commenting on the core sector growth numbers, ICRA said slowdown in May suggests a low likelihood of a meaningful improvement in the performance of the IIP in the just-concluded month.

“As expected, a waning of the favourable base effect for sectors such as refinery products, electricity, cement and steel, has led to a slide in core sector growth to 2.8 per cent in May from the high 8.5 per cent in April 2016,” it said in a statement.

Related Topics
comment COMMENT NOW