Core sector growth slows down to 3.4 pc in January

The growth of eight core sectors slowed down to a five-month low of 3.4 per cent in January mainly due to contraction in output of refinery products, fertiliser and cement. The growth rate of eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity was 5.7 per cent in January 2016. Infrastructure sectors' expansion in January this year is the lowest since August 2016, when the segments had recorded a growth of 3.2 per cent. It is also lower than that of 5.6 per cent seen in December 2016. The core sectors, which contribute 38 per cent to the total industrial production, expanded 4.8 per cent in April - January this fiscal compared to 2.9 per cent growth in the same period previous financial year, according to the data released by the commerce and industry ministry on Tuesday. The output of refinery products, fertiliser and cement contracted by 1.5 per cent, 1.6 per cent and 13.3 per cent, respectively during the month under review.

Both coal and electricity expanded at 4.8 per cent in January as against 7.9 per cent and 11.6 per cent expansion respectively in January 2016. However, crude oil, natural gas and steel output reported positive growth. Crude oil output grew by 1.3 per cent in January 2017 against 4.7 per cent contraction in the same month of previous year.

imilarly, natural gas and steel output rose by 11.9 per cent and 11.4 per cent respectively during the month under review.