Core industries growth slows downDate: 03 September 2019 Tags: Industries
Growth of eight core industries slowed down to 2.1 per cent in July as against 7.3 per cent in the same month last year, according to a government data.
During April-July, the eight sectors grew by 3 Percent compared to 5.9 % in the same period the previous year.
The data comes at the backdrop of weak manufacturing and consumption numbers dragging the country’s GDP growth to a 25-quarter low of 5 per cent in the first quarter (April-June) of the current fiscal.
The eight core sector industries – coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity – had expanded by 7.3 per cent in July last year.
These core industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).
Growth rate in production of steel, cement and electricity declined to 6.6 per cent, 7.9 per cent and 4.2 per cent, respectively, as against 6.9 per cent, 11.2 per cent and 6.7 per cent.
Fertiliser output marginally grew by 1.5 per cent in July as against 1.3 per cent in July 2018.
Reasons for slowdown
The growth has been pulled down mainly due to contraction in coal, crude and oil and natural gas production
Core industries have witnessed a gradual slowdown in growth due to weak consumer demand and lack of investments.