Core sector growth picks up in first quarter, but lower than in 2014-15

Growth in the eight core industries in the first quarter of the current fiscal is well above what it was a year ago


The cumulative growth for coal during the first quarter of 2016-17 was lower than in the corresponding periods of the previous two years. Photo: Getty Images
The cumulative growth for coal during the first quarter of 2016-17 was lower than in the corresponding periods of the previous two years. Photo: Getty Images

Eight core sectors of the economy saw a robust growth of 5.2% in June, almost double the 2.8% seen in May.

But then, this series is notoriously volatile and subject to the vagaries of the base effect.

What if we take the entire first quarter—the April to June period? How does growth stack up then?

The chart shows that growth in the eight core industries during the first quarter of the current fiscal year is well above what it was a year ago.

Unfortunately, it’s lower than growth in the first quarter two years ago, in 2014-15.

That sums up the tepid quality of the current recovery.

Coal, cement and electricity stole the show in June 2016, with output of each substantially rising on a month-on-month basis.

Coal production hit a 19-month high in June and cement output saw nearly a fivefold rise over the previous month. But the cumulative growth for coal during the first quarter of 2016-17 was lower than in the corresponding periods of the previous two years.

Similarly, the cumulative growth for cement during April to June 2016-17 was 5.7% year-on-year, but was lower than the 9.61% growth recorded in April-June 2014-15.

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