Growth of eight core sectors slowed to 3-month low of 4.1 per cent in March

Core sector growth rate slows to 4.1%

The growth of eight core sectors slowed to a 3-month low of 4.1 percent in March due to weak performance in as many as six sectors including coal, crude oil, and natural gas. The other sectors which showed slower growth rate were refinery products, steel, and electricity. The growth rate of eight infrastructure sectors, which also include fertilizers and cement, was 5.2 percent in March 2017, according to the data released by the commerce and industry ministry today. The previous low was in the core sectors was 3.8 percent in December 2017. Cumulatively, the eight core sectors grew by 4.2 percent in 2017-18, lowest in the last three financial years. The growth was 4.8 percent in the previous fiscal and 3 percent in 2015-16. The core sector would have an impact on the Index of Industrial Production (IIP) data as these eight segments account for about 41 percent of the total factory output.

Output growth rate of only fertilizer and cement reported healthy numbers. Both the sectors grew by 3.2 percent and 13 percent respectively in March. On the other hand, coal, natural gas, refinery products and steel production growth slowed to 9.1 percent (as against 10.6 percent in March 2017), 1.3 percent, 1 percent, 4.7 percent (as against 11 percent a year ago) respectively during the month under review. Electricity generation growth rate too decelerated to 4.5 percent as against 6.2 percent in March 2017. Crude oil recorded a negative rate of growth of 1.6 percent in March this year.