Core sector growth jumps to 4-month high of 6.3% in October
Better output in coal, refinery products and electricity led to higher growth, indicating an improvement in economic activity
New Delhi: The growth rate of eight of core industries rose to four-month high of 6.3% in October on the back of better output in coal, refinery products and electricity, a positive news ahead of the Reserve Bank of India’s (RBI) monetary policy review on Tuesday.
The eight core industries—coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity—had shrunk by 0.1% in October last year. The growth rate was 1.9% in September this year.
The core sector contributes 38% in the overall industrial production, a parameter that RBI takes into account while framing its monetary policy. RBI is expected to hold interest rate at 8% in its fifth bi-monthly monetary policy review on Tuesday.
The industry has been demanding a rate cut to push the economic growth, which has slowed to 5.3% in September quarter from 5.7% in the three months to June 2014. Production in coal, refinery products and electricity registered a growth of 16.2%, 4.2% and 13.2%, respectively in October, as per the data released by the commerce and industry ministry.
Growth in coal and refinery products had declined by 3.5% and 5%, respectively in October 2013 while growth in power generation was only 1.3%. Expansion in crude oil and steel production was 1% and 2.3% respectively in October.
The growth in the two sectors was slower than the previous month. During April-October, the eight sectors grew by 4.3% as against 4.2% in the same period last year.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!