Core sector growth rate slows to 3.2% in Oct

The growth rate of eight core sectors industries slowed to 3.2% in October from a year earlier on account of a sharp drop in crude oil and steel production.

The eight core industries -- coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity -- with a total weight of nearly 38% in IIP had grown at 9% in the same month last year.

The growth rate in September too was 3.2%.

The cumulative growth rate in April-October of 2015-16 came in at 2.5%, much lower than 5.6% in the first seven months of the last fiscal.

According to data released by the Ministry of Commerce and Industry today, crude oil, natural gas, refinery products and steel recorded negative growth in October.

Crude oil and steel production fell by 2.1% and 1.2%, respectively, from a growth of 1% and 14.2% a year ago.

Similarly, output of natural gas and refinery products declined 1.8% and 4.4%, respectively.

In contrast, coal, fertiliser, cement and electricity notched up a positive growth rate during the month under review.

Coal, fertiliser, cement and electricity generation grew 6.3%, 16.2%, 11.7% and 8.8%, respectively.