NEW DELHI: In what could bring cheer to policy makers ahead of the festive season, the output of the eight core sectors reported an impressive 4.9 per cent growth in August 2017 on the back of better performance by coal, natural gas, and electricity.
The eight infrastructure sectors — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and electricity -- had registered a 2.6 per cent growth in July 2017 and 3.1 per cent in August last year.
Notably, the growth recorded by these core sectors in August 2017 is the highest since April.
It is expected that the robust growth witnessed in key sectors would have positive implications on the Index of Industrial Production as these segments account for 41 per cent to the total factory output. The production of coal, natural gas and electricity rose by 15.3 per cent, 4.2 per cent and 10.3 per cent, respectively, according to the official data released on Tuesday.
The data shows that the petroleum refinery production increased by 2.4 per cent in August 2017 over August 2016. However, fertiliser, steel and cement recorded negative growth in the month of August.
The production growth of steel slowed down to 2.4 per cent and 3 per cent in August against 2.5 per cent and 16.7 per cent, respectively, in the same month last year, the states data released by the commerce ministry showed.
Cumulatively, the eight core sectors recorded a growth rate of 3 per cent during the five-month period of in April-August 2017 against 5.4 per cent in the same period a year ago. Electricity generation increased by 10.3 per cent in August 2017 over August 2016. Its cumulative index increased by 6.5 per cent during April-August 2017-18 over the corresponding period of the previous year. Since April 2014, electricity generation data from renewable sources are also included. Cement production also declined by 1.3 per cent in August 2017 over August 2016. Fertiliser production declined by 0.7 per cent in August 2017 over August 2016.
The production of coal, natural gas and electricity rose by 15.3 per cent, 4.2 per cent and 10.3 per cent respectively
The petroleum refinery production increased by 2.4 per cent in August 2017 against August 2016
Electricity generation increased by 10.3 per cent in August 2017 over August 2016