Output of eight core infrastructure sectors increased 3 per cent in June 2015(year-on-year) as coal, fertiliser, steel and petroleum refinery production posted strong growth.

The increase, however, was lower than the 4.4 per cent growth in the eight core industries’ performance registered in May 2015, as production of crude oil and natural gas declined and electricity grew marginally.

The cumulative growth of the eight sectors, accounting for about 38 per cent of the country’s industrial production, was 2.4 per cent in the April-June 2015 period, according to an official release.

“The core sector growth of 3 per cent registered in June 2015 is affected (pulled down) by strong positive base effect, as the sector grew 8.7 per cent in June 2014. Importantly, coal, fertiliser, steel and cement all have grown in June 2015 compared to May 2015,” Devendra Kumar Pant, Chief Economist, India Ratings, pointed out.

Coal production increased 6.3 per cent, while petroleum refinery production increased 7.5 per cent.

Fertiliser and steel posted growth of 5.8 per cent and 4.9 per cent respectively, while cement grew at a slower 2.6 per cent.

Crude oil, electricity decline Crude oil and natural gas were the two sectors that registered a decline in output at 0.7 per cent and 5.9 per cent respectively. Electricity generation was almost stagnant during the month posting a small increase of 0.2 per cent in June 2015.

In the April-June 2015 period, increase in coal production was 7.3 per cent and steel production was 2.8 per cent. Petroleum refinery, fertiliser, electricity and cement registered growths of 4.2 per cent, 2.4 per cent, 1.5 per cent and 0.9 per cent respectively.

Production of natural gas in the first three months of fiscal 2015-16 fell 4.2 per cent. The fall in crude oil production in the same period was lower at 0.7 per cent.

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