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Index of eight core industries rises 5.7% in Feb

01 Apr 2016

The output of eight core industries increased 5.7% and hit a 13-month high on February 2016, after a three-month long red spell, riding on the growth in the cement and fertiliser sectors, as per the official release from the Ministry of Commerce and Industry.

 

The combined index of eight core industries stood at 172.2 in February 2016, up 5.7% compared to February 2015. Its cumulative growth during April-February, 2015-16 was 2.3%.

Maximum growth was registered by fertiliser production, which increased 16.3% in February 2016 over February 2015. It was significantly high from a 6.2% growth in January 2016.

 

The second highest growth took place in the cement sector, which grew 13.5% in February 2016 (9% in January 2016).

 

Electricity generation, refinery products and crude oil production grew 9.2%, 8.1% and 8% respectively in February 2016 from February 2015. In January 2016, the growth was 6%, 4.8% and (-) 4.6% respectively, which was way below the latest figures.

 

The output growth of coal, steel and natural gas were 3.9%, (-)0.5% and 1.2% respectively in February 2016 from a year ago. In January 2016, coal production growth was 9%, sharply up from the current position. However, the output growth for steel and natural gas was negative at (-)2.8% and (-)15.3% respectively. 

 

The eight core industries’ have 38% weightage in the overall index of industrial production.

 

Commenting on the latest data, Madan Sabnavis, Chief Economist, CARE Ratings, said that the core sector numbers for February are encouraging and fairly diversified. This high growth will hopefully translate into the IIP.