Core sector grows 9.6 pc in March
The annual growth during 2007-08 of these six industries, however, grew by a slower 5.6 per cent as against 9.2 per cent during the corresponding period of the previous year.business Updated: May 15, 2008 21:10 IST
India’s core infrastructure sector grew by a robust 9.6 per cent in March, driven primarily by finished steel and cement output and stood out as a silver lining in an otherwise poor overall industrial sector performance during the month.
The Index of Six core-infrastructure industries—crude oil, petroleum refinery products, coal, electricity, cement and finished steel, having a combined weight of 26.7 per cent in the Index of Industrial Production (IIP) registered a growth of 9.6 per cent compared to a growth of 10.5 per cent in March 2007.
The annual growth during 2007-08 of these six industries, however, grew by a slower 5.6 per cent as against 9.2 per cent during the corresponding period of the previous year.
The growth was skewed heavily in favour of finished steel and cement that spurred growth in the infrastructure sector, with the former growing a staggering 21.3 per cent in March as compared to 16.6 per cent in the same month of 2007.
Cement output during March grew by 9.3 per cent from 5.5 per cent in the corresponding month of the previous year.
Coal production growth dipped by 9.3 per cent from 10.6 per cent during the month.
Crude oil production declined by 0.3 per cent, petroleum refinery output remained flat and electricity generation grew by just 3.6 per cent in March compared to eight per cent a year ago.
Data released earlier this month showed that India’s overall industrial output growth measured by the IIP slowed to its weakest in six years in March to 3 per cent triggering concerns about sustained economic downslide in a period of rising prices.