Growth slides in 6 core industries, hit by crude oil
The growth falls to 5.3% in June '07 compared to 7.7% in June '06 as crude oil production slowed, reports Gaurav Choudhury.business Updated: Aug 18, 2007 03:06 IST
Growth in core infrastructure sectors fell to 5.3 per cent in June this year compared with 7.7 per cent in the same month last year as production of crude oil slowed down.
The index of core infrastructure industries have a combined weight of 26.7 per cent in the overall index of industrial production (IIP).
On a quarterly basis, the growth of infrastructure sector fell to 6.9 per cent in April-June 2007 as against 7.4 per cent in the corresponding quarter of the previous year.
Crude petroleum production registered a negative growth, or an output fall, of 1.8 per cent in June as compared to a growth of 1.2 per cent in the same month last year.
During the first quarter of the current financial year, crude petroleum production registered a negative growth of 0.7 per cent compared with a marginal positive growth of 0.2 per cent in the first quarter of 2006-07.
Official data released by the government on Friday showed that barring electricity, all the other infrastructure industries — petroleum refinery products, coal, cement and finished steel — recorded slower growth in June.
Electricity grew by 6.8 per cent in June compared with 4.9 per cent in the same month last year. The first quarter growth of electricity generation was higher at 8.3 per cent as against 5.3 per cent last year.
Coal production grew by a meagre of 1.3 per cent in June 2007 compared with a growth rate 11.8 per cent in June 2006. During the first quarter, it grew by a paltry 0.7 per cent compared with an increase of 8 per cent during the same period last year.
Cement production grew by 5.6 per cent in June 2007 compared with 11.7 per cent last year, while it grew by 6.8 per cent in the first quarter, down from a growth of 10.2 per cent in the previous year. Growth in finished steel production also dipped to 5.6 per cent in June 2007 compared with 10.2 per cent in the same month last year. It grew by 7.7 Per cent during April-June 2007-08 compared with an increase of 10.3 per cent during the same period last year.