Core sector growth slips to over 1-yr low of 1% in Feb

Crude oil and natural gas contract; the previous low of 0.9% was recorded in December 2015

The growth of eight core sectors slipped to over one-year low of 1% in February mainly due to decline in output of crude oil, natural gas, refinery products, fertilisers and cement.

The growth rate of eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity was 9.4% in February 2016.

The previous low of 0.9% was recorded in December 2015. In January 2017, these sectors grew by 3.4%.

The core sectors, which contribute 38% to the total industrial production, expanded 4.4% in April-February this fiscal compared to 3.5% growth in the same period previous financial year, according to the data released by the commerce and industry ministry today.

Commenting on the data, rating agency ICRA said: "We expect the IIP to post a subdued volume growth in February 2017."

However, coal and steel recorded positive growth during the month.

The output of crude oil, natural gas, refinery products, fertilisers and cement contracted by 3.4%, 1.7%, 2.3%, 5.3% and 15.8%, respectively during the month under review.