Core sector growth falls to 0.4 per cent in June

Slow growth in key sectors would also have implications on the Index of Industrial Production.

Update: 2017-07-31 13:00 GMT
The report noted that lending rate cuts are key to cyclical recovery rather than reforms as reforms tend to push up growth only in the medium term.

New Delhi: The growth of eight core sectors slowed to 0.4 per cent in June due to contraction in output of coal, refinery products, fertiliser and cement.

The growth rate of eight infrastructure sectors -- coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity -- was 7 per cent in June last year.

The production of coal declined by 6.7 per cent, refinery products by 0.2 per cent, fertiliser by 3.6 per cent and cement by 5.8 per cent, as per the official data.

Crude oil output rose to 0.6 per cent last month as against a decline of 4.3 per cent in June 2016. According to the data, natural gas output rose by 6.4 per cent in June.

Steel production and power generation slowed to 5.8 per cent and 0.7 per cent in June this year from 8.8 per cent and 9.8 per cent in the same month last year respectively.

Slow growth in key sectors would also have implications on the Index of Industrial Production (IIP) as these segments account for about 41 per cent to the total factory output.

In May, these eight sectors had recorded a growth rate of 4.1 per cent.  

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