Growth of Eight Core Sectors slipped to 3.6 percent in June 2012 against 5.6 percent in June 2011

As per the official figures released on 31 July 2012, growth of eight core sectors slipped to 3.6 percent in June 2012 against 5.6 percent in June 2011. During April-June 2012-13, the cumulative growth rate of the Core industries was 3.6 % as against their growth at 5.2% during the corresponding period in 2011-12. Core sector growth in May 2012 had moderated to 4 percent, from 5.9 percent in May 2011.

The Eight core industries that include crude oil, petroleum refinery products, coal, electricity, cement and finished steel have a combined weight of 37.90 per cent in the Index of Industrial Production (IIP).

Coal: Coal production (weight: 4.38% in IIP) registered a growth of 7.2% in June 2012 compared to its growth at (-) 3.0% in June 2011. The growth of the coal sector in cumulative terms witnessed a growth of 6.4% during April-June 2012-13 compared to its growth at 0.3% during the same period of 2011-12.

Crude Oil: Crude Oil production (weight: 5.22% in IIP) registered a growth of (-) 0.8% in June 2012 compared to its growth at 7.7% in June 2011. Cumulatively Crude Oil production registered a growth of (-) 0.5% during April-June 2012-13 compared to its growth at 9.5% during the same period of 2011-12.

Natural Gas: Natural Gas production (weight: 1.71% in IIP) registered a growth of (-) 11.1% in June 2012 compared to its growth at (-) 11.7% in June 2011. Cumulatively, Natural Gas production registered a growth of (-) 11.1% during April-June 2012-13 compared to its growth at (-) 10.2% during the same period of 2011-12.

Petroleum Refinery Products: Petroleum refinery production (weight: 5.94% in IIP) had a growth of 6.1% in June 2012 compared to its growth at 4.6% in June 2011.  In cumulative terms, Petroleum refinery production saw a growth of 3.2% during April-June 2012-13 compared to its 5.2% growth during (April-June) period of 2011-12.

Fertilizers: Fertilizer production (weight: 1.25% in IIP) registered a growth of (-) 11.7% in June 2012 against its growth at (-) 2.4% in June 2011. Cumulatively Fertilizer production had a growth of (-) 12.2% during April-June 2012-13 corresponding to 1.1% growth during (April-June) period of 2011-12.

Steel (Alloy + Non-Alloy): Steel production (weight: 6.68% in IIP) registered a growth rate of (-) 0.5% in June 2012 against its 14.5% growth in June 2011. Cumulatively, Steel production registered a 3.6% growth during April-June 2012-13 compared to its 8.4% growth during the same period of 2011-12.

Cement: Cement production (weight: 2.41% in IIP) registered a growth of 10.2% in June 2012 against its 1.7% growth in June 2011. The cumulative growth of Cement Production was 9.9% during April-June 2012-13 compared to its 0.1% growth during the same period of 2011-12.

Electricity: Electricity generation (weight: 10.32% in IIP) had a 8.1% growth in June 2012 compared to its 7.9% growth in June 2011. The cumulative growth of Electricity generation was 6.4% during April-June 2012-13 compared to 8.2% growth during the same period of 2011-12.

India's economic growth rate dipped to nine-year low, both in the March quarter at 5.3 percent, as well as for the 2011-12 fiscal at 6.5 percent on account of global economic slowdown and its own domestic problems thereby prompting the industry to demand immediate and bold action to arrest slowdown.