Core sector growth up 5.3% in Feb as cement, refinery outputs pick up

NEW DELHI: A steep rise in output of cement and fertilisers pushed up the growth of the core sector to 5.3% in February even as refinery products, electricity, coal, and natural gas production made the output of the infrastructure industries grow slower than 6.1% in January.

Official data released by commerce and industry ministry on Monday showed a 22.9% rise in cement output and 5.3% increase in fertiliser production in February compared with a 19.6% rise and 1.6% decline, respectively in January.

“Cement still is the main driver here along with steel where infra expenditure by the government would be the main factor,” said Madan Sabnavis, chief economist at CARE Ratings.

The eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, constitute 40.27% of the total industrial production.

Factory output had grown 0.6% in February 2017.

Petroleum refinery production surged 7.8% in February against a 2.8% fall in the year-ago month. Fertiliser and cement production rose 5.3% and 22.9%, respectively.

Electricity generation grew 4% in February against 1.2% expansion in February 2017.

Coal and steel production grew 1.4% and 5% respectively during February against 6.6% and 8.7% growth respectively in the same month last year.