India's August core industries output jumps 2.6%

The growth was helped by a rise in production of fertilisers, refinery products, crude oil and electricity

India's core industries' output grew by 2.6% last month from an increase of 1.1% in July, due to a rise in production of fertilisers, refinery products, crude oil and electricity.

The select factory output index rose by 5.9% in August 2014.

The data on the select factory output was furnished by the commerce and industry ministry for the eight core industries (ECI), which comprises 38% of the total weightage of items included in the Index of Industrial Production (IIP).

The index's cumulative growth from April to August 2015-16 stood at 2.2%, as compared to 5.6% during April-August 2014-15.

Electricity generation, commanding the highest weightage at 10.32%, rose robustly by 5.6% during the month under review, whereas steel production, the second most important component as per weightage, contracted 5.9% in August.

Distilling of refinery products, the third most important component as per weightage, was higher by 5.8% last month.

The crude oil extraction, which has a 5.21% weightage in ECI, was higher by 5.6% during the month under review in comparison to the data for August 2014.

Coal mining, that has a 4.38% weightage, marginally increased by 0.4%.

Cement manufacturing, having a weightage of 2.41%, was up by 5.4% during the last month.

The sub-index for natural gas output, having a weightage of 1.71%, grew by 3.7% in the month under consideration.

The fertilisers manufacturing which has a weightage of only 1.25% rose exponentially by 12.6%.