Eight core industries grew at a slower pace of 2.1% in August, as against 3.8% in the same month last year due to negative growth in crude oil, natural gas, fertiliser and cement.
During April-August this fiscal, the growth has slowed to 2.8%, from 5.5% in the year ago period, according to official data released on Friday.
"The moderation in growth was on account of the negative growth in the production of natural gas, cement, fertilisers and crude oil, besides a decline in the growth rates of steel and electricity production," it said.
Natural gas and crude oil production contracted by (-) 13.5% and (-) 0.6%, respectively in August.
Fertiliser and cement output also shrunk by (-) 2.1% and (-) 2.4% during the month under review.
Steel and electricity production slowed to 1.8% and 1.7%, respectively. In the comparable month, it was 7.9% and 9.4% in that order.
However coal and petroleum refinery output grew by 11% and 8.4% in August, against (-) 15.2% and 3.8% respectively.
The eight core sector industries have a weight of 37.9% in the overall Index of Industrial Production (IIP).
The growth in core sector industries in May, June and July, too, had moderated to 4%, 3.6% and 1.8%.
In the same months last year, it was 5.9%, 5.6% and 8.2% respectively.