Core Sector Growth Slows In January

Growth in the infrastructure sector continued to be slow with six core sectors recording a 2.9 per cent growth in January against the monthly average of 3.3 per cent during April-January.

On a point-to-point basis, monthly averages were lower at 3.3 per cent compared to 8.6 per cent growth seen in thecorresponding period last year.

The six infrastructure industries which account for 24 per cent of the weight of the index of industrial production (IIP) are electricity (hydro and thermal), coal, steel, crude petroleum, petroleum refined products and cement.

Crude production lead the deceleration in infrastructural growth with the sector registering a negative growth of 9.2 per cent against the monthly average of deceleration at 8.8 per cent. Last year the sector witnessed a growth rate of 8.7 per cent.

 

Though the deceleration in the generation of hydel power continued, January indicated a marginal increase in the sector. Against a 6.2 per cent deceleration in monthly hydel power generation, January saw a deceleration of just 1.5 per cent.

Coal, steel, cement and thermal generation sustained the average monthly growth in January, while the production of refined petroleum products surpassed the monthly average for the year during the month.

As against the monthly average of a 6.9 per cent growth seen in April-January, production in January was up by 9.7 per cent.

The performance of the infrastructure sector was also better on a point to point basis.

On a 3.7 per cent growth seen April-January 1995-96, production was up by 6.9 per cent during the same period this year.