Six core industries grew by 6.8 per cent in February against 4.2 per cent a year ago, boosted by surge in crude oil and finished steel output. However, sequentially, the growth rate declined from 7.1 per cent in January.
Even though the six industries — crude oil, petroleum refinery, coal, electricity, cement and finished steel — constitute one-fourth of the Index of Industrial Production (IIP), it is becoming increasingly difficult to take an inference on industrial growth from core industry data. As a case in point, industrial growth stood at just 3.7 per cent in January, despite a good performance by core sector industries.
In February, petroleum refinery and crude oil output grew by 3.2 per cent and 12.2 per cent from 0.7 per cent and 4 per cent respectively a year ago. Electricity generation expanded by 7.2 per cent in the month from 6.9 per cent a year ago. Finished steel performed quite well, registering 11.5 per cent growth from a contraction of 0.2 per cent.
But cement production grew at less rate of 6.5 per cent in February from 7.9 per cent a year earlier. The coal story turned out to be even more dismal. Its output declined by 5.7 per cent from 6.7 per cent growth a year earlier. During the first 11 months (April-February) of the current financial year, the six core industries grew by 5.7 per cent as against 5.4 per cent a year ago.