Core sector’s growth slips to 3.1% in July

Core sector’s growth slips to 3.1% in JulyThe growth of Indian core sector slipped drastically year-on-year in July, giving another indication that the Asian economy is still in the tight grip of slowdown.

The core sector, which includes eight key infrastructure industries viz. coal, crude oil, natural gas, petroleum refinery products, fertilizers, steel, cement and electricity, grew only 3.1 per cent in the month of July 2013 as against 4.5 per cent growth rate recorded in corresponding month of 2012.

However, the July growth rate achieved by the core sector was way better month-on-month. In June this year, the core sector could grow at a rate of just 0.1 per cent.

Crude oil and natural gas sectors were mainly responsible for the year-on-year decline in growth rate. Crude oil production slipped 2.3 per cent year-on-year in July, while natural gas output contracted 16.1 per cent.

Electricity generation jumped 5.2 per cent but fertilizer production could grow only by 0.4 per cent during the month under review. Growth in petroleum refinery output also slipped from an impressive 26 per cent increase in July
2012 to 5.1 per cent in the same month this year.

The core sector accounts for 38 per cent share Indian economy's overall industrial production.