Home / Industry / Manufacturing /  Core sector growth at 17-month low of negative 0.1% in March

New Delhi: Eight core industries registered a negative growth of 0.1% in March, the lowest performance in 17 months, due to a steep decline in production of steel, cement and refinery products.

The output had expanded by 4% in March 2014. The previous low logged by the core industries was in October 2013 at (-) 0.6%. The growth of eight core industries—coal, crude oil, natural gas, refinery products, fertiliser, electricity, steel and cement—was 1.4% in February 2015.

For the full 2014-15 fiscal, the production growth of eight sectors also slowed down to 3.5% from 4.2% in previous financial year ended in March 2014. “The stagnation in core sector output and contraction in merchandise trade ... leading us to expect a moderation in industrial growth," rating agency ICRA said.

The growth rate of core sector industries has been declining since November last year. It was 6.7% in November 2014, which fell to 2.4% in December 2014 and then to 1.8% in January.

The eight sectors contribute 38% to the overall industrial production, a parameter that the Reserve Bank of India (RBI) takes into account while framing its monetary policy. In March 2015, steel production declined by 4.4%, cement output by 4.2%, refinery products’ by 1.3% and of natural gas by 1.5%, according to the data released by the commerce and industry ministry.

However, coal production rose by 6%, crude oil by 1.7% and fertiliser output by 5.2% in the last month of 2014-15 fiscal. Electricity generation grew by 1.7% in March 2015 compared to 5.4% in the same month last year.

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less

Recommended For You

Trending Stocks

×
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout