Core Sectors of Indian Economy Grew By 6.5 Percent in October 2012

Eight core sectors of the Indian Economy grew by 6.5 percent, the eight-month high in October 2012-2013 in comparison to 0.4 percent in same time period last year, the official data revealed on 30 November 2012. The sectors which weight approximately 38 percent in Index of Industrial Production (IIP) increased by seven-month high in September by 5 percent and 2.3 percent in August.

However, the growth of core sector is not dependent on the data of industrial production. For instance, inspite of the higher growth in core sector, the industrial production contracted around 0.4 percent in September. A lot of things are dependent on the capital goods segment which showed consistent contraction.

The official data revealed that the eight main industries of the Indian economy- steel, electricity, coal, crude, cement, natural gas, refinery products and fertilisers grew 3.7 percent in initial seven months of 2012-2013 fiscal year against 4.3 percent in the same period in 2011-2012 fiscal year.

Output of the coal showed regular growth with 10.9 percent. However, on the monthly basis, it was lower when compared with 21.4 percent in September. Refinery products, steel as well as cement contributed towards the strong economic growth with 20.3 percent, 5.9 percent and 6.8 percent respectively.

Natural gas as well as crude oil remained in contractionary zone. Crude oil witnessed a fall in the growth consecutively for fifth month at 0.4 percent in comparison to 1.7 percent in September. Production of natural gas on the other hand, decreased by 14.9 percent. In September as well, it decreased 14.8 percent. Production of natural gas has continued to contract for more than a year now.

Initially, in February 2012, all these sectors grew at a faster speed of 6.9 percent.
 
The production of cement decreased from 13.8 percent in September to 6.8 percent.

Generation of electricity, on the other hand increased by 5.2 percent after this segment saw a decrease in previous three months.

Fertilisers indicated positive growth of 2 percent after 5.7 percent growth in September.