Official data for output of the core sectors in July has taken the edge off the exuberance over the 10-quarter high gross domestic product (GDP) growth numbers for April-June 2014. Data released on Monday showed that growth of the eight core industries slid 2.7 per cent during July on shrinking output of crude oil, natural gas, refinery products, fertilizers and steel. In June, on the back of smart performances of the cement and electricity industries, the eight core industries had grown 7.3 per cent, the fastest in nine months.
Crude oil output declined by 1 per cent, natural gas was down 9 per cent, production of refinery products shrunk 5.5 per cent, fertilizers output was 4.2 per cent lower and steel production recorded a negative growth of 3.4 per cent in July, according to the data of the Commerce and Industry Ministry.
The good performers include coal, production of which grew 6.2 per cent, cement output was up 16.5 per cent and electricity generation rose 11.2 per cent during the month.
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Cumulative growth since April of the core sectors is 4.1 per cent. It was the same during April-July 2013 as well.
Growth in the infrastructure sector has a combined weight of about 38 per cent in the Index of Industrial Production (IIP).