This was on the back of high growth rate in electricity, cement and coal segment. In the previous month, core sector which comprises of eight infrastructure industries grew at three-month high of 3.1%.
Electricity, grew at a massive 6.7% in August compared to 1.9% in August last year. Cement registered growth of 5.5% in August this year against 0.4% in the same period last year. Petroleum refinery products expanded 4.9% in August over a high 31.8% growth in August 2012. Coal sector grew at 5.5% against 11.8% growth.
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However, contraction in output of natural gas continued this month as well and remained at 16.1% against contraction of 13.5%. Natural gas has been contracting since December 2010. Crude oil continued to contract for the fifth consecutive month and was at 1.5% against contraction of 0.6% in same period last year.
The core sector contributes 37% to the Index of Industrial Production (IIP) which will be released on 12 September. This has taken the overall growth rate in core sector from April-August to 2.3% this year against a high 6.3% in same period last year. The IIP grew at four-month high of 2.6% in July when the core sector had expanded 3.1%.