Core sector growth slows to 4.1% in March

By TheHindu on 02 May 2018

The growth of eight core sectors slowed to a three-month low of 4.1% in March due to weak performance in six sectors including coal, crude oil and natural gas.

The other sectors which showed slower growth rates were refinery products, steel and electricity.

The growth rate of the eight infrastructure sectors, including fertilizers and cement, was 5.2% in March 2017, according to data released by the Commerce Ministry on Tuesday. The previous low was 3.8% in December 2017.

Cumulatively, the eight core sectors grew 4.2% in 2017-18. The growth was 4.8% in the previous fiscal and 3% in 2015-16. The core sector growth would have an impact on the Index of Industrial Production (IIP) data as these eight segments account for about 41% of the total factory output.

Fertilizer, cement rise

Only the fertilizer and cement sectors reported healthy numbers, growing 3.2% and 13% respectively in March.

Coal, natural gas, refinery products and steel production growth slowed to 9.1% , 1.3%, 1%, 4.7% respectively in March.

Electricity generation growth rate too decelerated to a growth of 4.5% as against 6.2% in March 2017.