Growth of core industries recovers to 5.1% in Sept

NEW DELHI: Decline in crude output notwithstanding, the growth of six core industries has recovered to 5.1 per cent in September from a dismal 2.3 per cent in August this year.

This could have a positive impact on the overall industrial index production (IIP) numbers, which had nosedived to 1.3 per cent in August. The six core industries have a 26.7 per cent weight in the IIP.

Core sector growth was 5.8 per cent in September last year.

"These figures may have a bit of positive impact on the IIP," rating agency ICRA Managing Director Naresh Thakkar said.

Even as crude oil production declined by 0.4 per cent, the fall was less than the 0.7 per cent drop in September last year.

Growth in six core industries in September was basically driven by coal and cement production, which grew by 10.7 per cent and 7.9 per cent from 6.3 per cent and 5.4 per cent, respectively, in the year ago period.

Electricity generation grew by 4.4 per cent from 4.3 per cent in September last year.

Of the six industries (crude oil, petroleum refinery products, coal, electricity, cement and finished carbon steel), coal, cement and electricity registered good growth rates.

Petroleum refinery output growth was slipped to 2.8 per cent in September against 6.9 per cent a year ago.

Growth in finished carbon steel, too, was down to 5.8 per cent from 9.5 per cent in September last year