The eight core industries delivered a Diwali surprise, recording 8 per cent growth in September, the highest in the last 12 months. A sparkling performance by the electricity, steel, crude oil and cement sectors lifted infrastructure industries’ growth. However, the growth was still lower than the 8.3 per cent expansion recorded in September 2012, official data released on Thursday showed.

This performance of the key industries — coal, crude oil, natural gas, petroleum refinery products, fertilisers, steel, cement and electricity — has raised hopes of a positive impact on the Index of Industrial Production (IIP) for September, due in the first fortnight of November.

The eight core industries have 38 per cent weightage in the IIP, whose growth had slowed to a crawl, at 0.6 per cent in August against 2.7 per cent in July.

On a cumulative basis, output growth of the core sector in the first six months slowed to 3.2 per cent against 6.6 per cent in the same period last fiscal. The September performance was also bolstered by a strong showing by crude oil, refinery products, fertilisers and steel.

Experts said that though the growth rate in September is high, the coming two-three months bear watching.

“One should not be in a hurry to say that this figure is reflecting a revival. If the trend continues for another two-three months, then we can say. But it will have a positive impact on IIP numbers for September,” said Crisil’s Principal Economist D. K. Joshi.

Coal output grew 12.5 per cent (22.2 per cent in September 2012), cement 11.5 per cent (13.8 per cent) and electricity generation 12.6 per cent (3.9 per cent).

In September, steel output was up 6.6 per cent (1.3 per cent). Fertiliser output grew 5.3 per cent (5.7 per cent) and refinery products output 8 per cent (34.9 per cent).

>Srivats.kr@thehindu.co.in

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