Core Sector Index Grows 5.8%

The index of infrastructure industries recorded 5.8 per cent growth in June this year, a 5 per cent hike from the 0.8 per cent growth recorded in the corresponding month last fiscal.

The index, which covers six industries has been growing at over five per cent since April, and the average growth for the first quarter is 5.7 per cent as against 1.2 per cent in the April-June 2001. In Q1 as a whole, none of the six sectors, which account for almost 27 per cent of the index of industrial production has reported a drop in production as compared to the April-June 2001-02 period.

In June, growth was led by the coal sector which grew by 10.2 per cent, a sharp spurt from the 6.4 per cent fall in production reported in June 2001. Crude petroleum reported 10 per cent growth, up from a 7.4 per cent fall in production in the corresponding month last year. Finished steel grew at 7.6 per cent as against 2.2 per cent growth in June 2001. Cement, reported 4.2 per cent growth as against a 0.1 per cent fall in production in June 2001. Electricity reported 3.6 per cent growth as against 2.1 per cent in the corresponding month last year.

The poor monsoon, however, affected the hydro-electricity production, which reported a sharp drop to 5,906 million kwh from 6,265 million kwh in June 2001.

Petroleum refinery products was the only sector that did worse than in 2001, with a growth of 2.8 per cent in June 2002 as against 11.8 per cent in June 2001. In the first quarter, cement reported the sharpest growth of 8.1 per cent as against 2.4 per cent in Q1 last year. Crude petroleum, grew at 7.2 per cent as against a 4.1 per cent fall in production in Q1 in 2001-02.

Coal grew at 6.6 per cent as against 0.1 last year, while finished steel reported 6.8 per cent growth, a sharp jump from the 0.1 per cent fall in production, last year.