Core sector grows at 6.8% in Nov

Tribune News Service

New Delhi, January 1

The core sector industries grew by 6.8% in November, helped by a favourable base effect and strong performance in segments like steel and cement. The eight infrastructure sectors — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity — had witnessed a growth of 3.2% in November 2016.

The output of refinery products, steel and cement rose by 8.2%, 16.6% and 17.3%, respectively on an annual basis, according to the data released by the Commerce and Industry Ministry.

Aditi Nayar, Principal Economist, ICRA, said a favourable base effect-led spike in the expansion of cement and steel contributed to the uptick in growth of the core industries to a 13-month high 6.8% in November, even as four of the eight industries (coal, natural gas, fertilisers and electricity) recorded a sequential dip in growth.

After a gap of four months, coal output recorded a contraction in November 2017, which was led by the continued waning of the favourable base effect, she added.

A healthy growth in key sectors will have positive implications on the Index of Industrial Production (IIP) as these eight segments account for about 41% of the total factory output.