Core sector growth rate slows to 3.2% in Oct

The growth rate of eight core sectors industries slowed to 3.2 per cent in October from a year earlier on account of a sharp drop in crude oil and steel production.

The eight core industries -- coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity -- with a total weight of nearly 38 per cent in Index of Industrial Production had grown at 9 per cent in the same month last year.

The growth rate in September too was 3.2 per cent.

The cumulative growth rate in April-October of 2015-16 came in at 2.5 per cent, much lower than 5.6 per cent in the first seven months of the last fiscal.

According to data released by the Ministry of Commerce and Industry on Monday, crude oil, natural gas, refinery products and steel recorded negative growth in October.

Crude oil and steel production fell by 2.1 per cent and 1.2 per cent, respectively, from a growth of 1 per cent and 14.2 per cent a year ago.

Similarly, output of natural gas and refinery products declined 1.8 per cent and 4.4 per cent, respectively.

In contrast, coal, fertiliser, cement and electricity notched up a positive growth rate during the month under review.

Coal, fertiliser, cement and electricity generation grew 6.3 per cent, 16.2 per cent, 11.7 per cent and 8.8 per cent, respectively.

Image: A dancer performs at the rear of the historic Taj Mahal to promote tourism in Agra. Photograph: Brijesh Singh/Reuters