Core sector posts 5% growth
The six core infrastructure industries posted five per cent growth in May compared to the same period last fiscal, giving optimism that the country’s overall robust industrial expansion is well on track.
The infrastructure industries, which have a combined weight of 26.7 per cent in the overall factory output, grew 3.2 per cent in May last year.
However, the May figures are a tad lower than their respective April numbers as the six key sectors — crude, coal, petroleum refining, electricity, cement and finished steel — had posted a growth of 5.4 per cent in April this year.
The growth in the infrastructure sector was led by petroleum refinery output, which rose by a robust 7.7 per cent in May, against a negative 4.3 per cent growth in the corresponding month last year.
Crude oil production also rose 5.8 per cent against a negative growth of 4.3 per cent in the same month last year, while electricity generation more than doubled to 6.4 per cent from 3 per cent last year.
However, finished steel grew slightly lower at 2.5 per cent in the reporting month against 2.8 per cent in the same month last year and coal production also slowed to 0.1 per cent against an expansion of 10.4 per cent in May last year.
As per the data, cement output also slowed down to 8.6 per cent against 11.8 per cent in May last year.
“Minor fluctuations in the core data is not unusual. With thrust on infrastructure, the core sector looks promising. The overall industrial growth in May should be 14-15 per cent,” Crisil principal economist, Mr D.K. Joshi, said.
However, leading economic think-tank Icrier director, Mr Rajiv Kumar, is not impressed with the core sector numbers. “It is not so good. This may adversely affect growth in other sectors,” he said.
In April, output picked up more steam to login in a growth of 17.6 per cent, boosting the prospects of achieving 8.5 per cent economic growth in the current fiscal.
The May factory output data will be announced next month. In the first two months this year, the six core sectors registered a growth of 5.1 per cent against 3.5 per cent same period last year. —PTI
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