The production pace at India’s major industries slowed to 2.1 per cent from 7.3 per cent in July. The index of eight core industries in July was increased by just 0.7 per cent.
As reported by IANS, the eight core industries like coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity, comprise 40.27 per cent of the weight of items included in the index of industrial production (IIP).
The progress from April to July was 3 per cent cumulatively but the last financial year reported 5.9 per cent growth for the same period.
Considering specific sectors, the refinery output which weighs 28.03, went down by 0.9 per cent in July compared with the previous year’s report.
Electricity generation which has the second highest weightage of 19.85, increased by 4.2 per cent.
The third important component Steel production which weighs 17.91, was up by 6.6 per cent.
Crude oil extraction which weighs 5.37 per cent rose up to 7.9 per cent. The component with least importance is fertilizer production with weightage 2.62, increased by 1.5 percent in July.
IANS quoted Aditi Nayar, Principal Economist, ICRA saying "The core sector data offered mixed cues, with the moderately healthy growth of cement and steel output juxtaposed against YOY contraction in four indices, namely coal, crude oil, natural gas and refinery output."
She further stated, "Based on the improved performance of the core sector and non-oil merchandise exports, ICRA expects industrial growth (IIP expected next week) to rise modestly in July led by manufacturing, even as mining and electricity would record a sequential weakening."