India’s core sector growth buoyed by fertiliser and electricity generation

India’s core sector registered growth of 3.2% in September, compared to 2.6% in August, the fastest rise in four months. The combined Index of Eight Core Industries – crude oil, petroleum refinery products, natural gas, fertilisers, coal, electricity, cement and finished steel – stood at 166.8 in September 2015, meaning a cumulative growth in the April – September period of 2.3%, lower than the 5.1% achieved in the same period of the previous year.

The most successful industries were fertilisers and electricity generation, with double-digit growth, while coal grew at a slower pace of 1.9%, an increase from August but a decrease y/y. Cement and steel production both declined month/month and in the April – September period. Cement decreased by 1.5% in September against growth of 5.4% in August, while steel fell 2.5%. This has raised some concern over economic momentum, with some analysts casting doubt over the significance of the combined figures as an indicator of growth when the majority of core sectors achieved either sub-2% growth or declined.

Edited from various sources by Katherine Guenioui

Sources:

• Live Mint
• RTT News
• Times of India
• The Indian Express

Read the article online at: https://www.worldcement.com/indian-subcontinent/03112015/india-core-sector-growth-buoyed-by-fertiliser-electricity-898/