The growth of eight key infrastructure industries slowed to 5.2 per cent in June, as against 5.3 per cent growth in the previous month, on the back of contraction in the output of three industries — coal, natural gas and fertilisers.
The output of infrastructure industries had grown at the rate of 4.4 per cent in June last year.
The growth numbers of the eight industries — coal, crude oil, natural gas, petroleum refinery products, fertilisers, finished steel, cement and electricity — could have a dampening effect on the industrial expansion figure for June. All these industries account for 38 per cent in the overall index of industrial production.
“The numbers are not that much good. They will keep IIP (data) low,” Crisil Chief Economist D K Joshi said.
For the first quarter of this financial year, these industries grew by five per cent against 6.8 per cent in the same period a year ago.
For June, the output of natural gas declined sharply by 11.7 per cent, compared to a growth rate of 25.4 per cent in the same month a year ago. Production contracted by 10.2 per cent for first three months of this financial year from 37 per cent growth in the corresponding quarter in the previous year.
Similarly, coal production fell by 3.3 per cent in June from 0.8 per cent. The output, however, was up by 0.2 per cent in the first quarter from a 0.6 per cent contraction in the corresponding three months in 2010-11.
Analysts said the fall in coal output was due to problems in evacuation.
The fall in fertilisers’ output continued as it contracted by 2.4 per cent from 6.7 per cent in June 2010. For the first three months of this financial year, growth was just 1.1 per cent against contraction of 2.6 per cent in the same period last year.
However, crude oil, petroleum refinery products, steel, electricity and cement showed growth in production in June.
Industrial growth has slacked in the first two months of this fiscal. In April, the growth was just 5.76 per cent against 13.03 per cent in the same month a year ago, while in May it stood at 5.60 per cent against 8.50 per cent in the same month in 2010.
