Eight Core Infrastructure Industries registered 3.5 per cent Growth in August 2011

As per the provisional data released by the the Commerce Ministry on 27 September 2011, the eight core infrastructure industries registered an output growth of 3.5 per cent in August 2011 lower than the 4.4 per cent growth witnessed in the corresponding period in 2010. The eight core industries include- crude oil, petroleum refinery products, natural gas, fertilizers, coal, electricity, cement and finished steel. The eight core industries have a total weight of 37.90 per cent in the Index of Industrial Production (IIP).

The cumulative growth rate of the eight industries during the April-August period of 2011-12 stood at 5.3 per cent, down from the 6.1 per cent in April-August period of 2010.

The growth in output of electricity, steel and cement output went up by 8.9 per cent, 7.7 per cent and 7.2 per cent, respectively in August 2011 as compared to expansions of 1.6 per cent, 10.8 per cent and 1.6 per cent in August 2010.

Production of crude oil, however, grew by a mere 1.6 per cent during August 2011 as against a robust growth of 15.2 per cent posted in August 2010. On the contrary, the growth in output of petroleum refinery products went up by 3.9 per cent as compared to a contraction of 2.3 per cent during the same month in 2010.

Similarly, fertilizer output went up by 4.3 per cent in August 2011 as compared to a negative growth of 5.7 per cent August 2011.

The two laggards among the eight core sector industries during the month were natural gas and coal which witnessed negative growth rates of (-) 5.3 per cent and (-) 15.3 per cent, respectively, In August 2010, while coal output had shown a paltry increase of 0.6 per cent, natural gas had witnessed a hefty output growth of 11.9 per cent.