Crude, power, steel drag core sector down | india | Hindustan Times
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Crude, power, steel drag core sector down

india Updated: Sep 10, 2008 20:30 IST
HT Correspondent
HT Correspondent
Hindustan Times

The spectre of a dip in the overall factory output loomed large over the economy after six key infrastructure industries grew by a sluggish 4.3 per cent in July from 7.2 per cent a year ago.

The core grouping of infrastructure industries, which accounts for 26.68 per cent of industrial output, could adversely impact economic growth.

Crude oil was the worst performer in the group, with a negative growth of 3 per cent in July this year against a positive trend in the comparable month of last fiscal.

Industrial growth fell to 5.2 per cent in the first quarter of 2008-09 amidst signs that companies were deferring planned expansions due to costlier capital.

The Reserve Bank of India has hiked the cash reserve ratio (CRR)—the mandatory proportion of money banks have to park with the central bank— and the repo rate, the benchmark short-term lending rate, to 9 per cent to control inflation that has remained above a worrisome 12 per cent mark.