Economy

After a 4-month fall, core sector recovers to 1.3 % in December

Our Bureau New Delhi | Updated on January 31, 2020 Published on January 31, 2020

The overall growth in the eight sectors in the April-December 2019-20 period was marginal at 0.2 per cent and reflects stagnation in infrastructure industry   -  Bloomberg

Coal, fertiliser, refinery, steel, cement rises; crude, natural gas, electricity slips

Production in India’s eight core infrastructure industries posted a growth of 1.3 per cent in December 2019 (year-on-year) after four months of continuous fall as production of coal, fertiliser, refinery products, steel and cement expanded in the month.

Crude oil, natural gas, and electricity production contracted in the month, as per figures released by the Commerce & Industry Ministry on Friday.

The core sector growth in December 2019 was lower than the 2.1 per cent recorded in December 2018.

The overall growth in the eight sectors in the April-December 2019-20 period was marginal at 0.2 per cent.

‘Disappointing trend’

“The core sector data, though better than last month at positive 1.3 per cent, considering it was negative for 4 months, is still quite disappointing as it reflects limited uptake in the infra space. Besides, overall growth of 0.2 per cent for the 9 months period shows stagnation in infra industry for the first three quarters,” according to Madan Sabnavis, Chief Economist, CARE Ratings.

Coal production (weight of 10.33 per cent) increased by 6.1 per cent in December 2019, compared to the same month last year.

Its cumulative index declined by 3.5 per cent during April-December 2019-20 over corresponding period of the previous year.

Petroleum refinery production (weight of 28.04 per cent) increased by 3 per cent during the month under consideration while in the April-December 2019-20 period, total production declined by 0.6 per cent.

Steel production (weight of 17.92 per cent) increased by 1.9 per cent in December 2019, although total production for the period under review increased by 5.2 per cent.

Cement production (weight of 5.37 per cent), too, increased by 5.5 per cent in December 2019, while its cumulative index increased by 0.7 per cent during April-December 2019-20.

Production of fertilisers (weight of 2.63 per cent) increased by 10.2 per cent in December, 2019.

Its cumulative index increased by 4.7 per cent during April-December, 2019-20 period. Crude Oil production (weight of 8.98 per cent) declined by 7.4 per cent in December 2019 over December 2018. Cumulative production declined by by 6 per cent.

Natural gas production (weight of 6.88 per cent) declined by 9.2 per cent in December 2019 over the same month last year.

Its cumulative index declined by 3.8 per cent during April-December 2019-20 over the corresponding period last year.

Electricity generation (weight of 19.85 per cent) declined by1.6 per cent in December, 2019.

In the April-December 2019-20 period, the cumulative index increased by 0.5 per cent.

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Published on January 31, 2020
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