Eight core industries' index grows by 4.4 percent in May

A major index for select factory output jumped by 4.4 percent in May from a decline of 0.4 percent in the month before due to healthy rise in coal, electricity and refining production.

According to data furnished by the commerce and industry ministry, the eight core industries (ECI) which comprise 38 percent of the total weight of items included in the Index of Industrial Production (IIP) stood at 178.6 from 162.4 in April.

The index's cumulative growth during April to May, 2015-16 stood at 2.1 percent.

Electricity generation, commanding the highest weightage at 10.32 percent, grew by 5.5 percent in May, 2015.

Steel production, the second most important component as per weightage, increased by 2.6 percent in May, 2015.

Production of crude oil, the third most important component as per weightage given, inched higher by 0.8 percent last month.

Coal, which has a 4.38 percent weightage in ECI, gained by 7.8 percent in May this year in comparison to the corresponding month in 2014.

Cement production, having a weightage of 2.41 percent, was up by 2.6 percent in May, 2015.

The sub-index for fertilisers which has a weightage of 1.25 percent rose by 1.3 percent, while the petroleum refinery production with a weightage of 5.93 percent grew by 7.9 percent during the month under review.

However, production of natural gas, having a weightage of 1.71 percent, was lower by 3.1 percent in the month under consideration.