Core sector growth rises to 4.2 % in April

Helped by healthy growth in electricity, fertilizers, cement and coal, the output of eight core industries increased 4.2 per cent in April, up from 2.5 per cent in the previous month.

The growth of the eight core sector in April, 2013, was 3.7 per cent.

Electricity production increased 11.2 per cent in April this year from 3.5 per cent in the same month last year.

Similarly, fertilizers, cement and coal registered higher growth during the month under review.

Fertilizers, cement and coal recorded a growth 11.1 per cent, 6.7 per cent and 3.3 per cent, respectively, in April, according to the data released by Commerce and Industry Ministry on Monday.

According to rating agency ICRA, “notwithstanding the pick up in core sector growth, IIP growth for April is expected to record less than one per cent growth.’’ Showing no signs of recovery, index of industrial production (IIP) remained in negative territory for the second month in a row, contracting 0.5 per cent in March due to declining output in manufacturing, especially capital goods. Coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity sectors had expanded 2.7 per cent in 2013-14. The eight industries have a combined weight of about 38 per cent in the Index of Industrial Production. Steel production increased 3.1 per cent compared with 10.1 per cent in the same month last year. Crude oil, natural gas and petroleum refinery product sectors contracted 0.1 per cent, 7.7 per cent and 2.2 per cent, respectively, in April.