Reflecting the continued slowdown in economic activity, the eight infrastructure sectors grew a mere 2.2 per cent in April, against 4.2 per cent in the same month last year. A contraction in the output of all the three oil sector components—crude oil, natural gas and refining—along with that of fertilisers pulled down growth.
The eight core sectors, which have a weightage of 37.9 per cent in the index of industrial production (IIP), include coal, electricity, cement and steel, all of which saw year-on-year expansion in April.
The growth of the eight core sectors in April was the same as that in March, the figure for which was revised to 2.2 per cent from the earlier estimate of two per cent. For financial year 2011-12, growth was revised to 4.4 per cent, against the earlier figure of 4.3 per cent. In 2010-11, the eight core sector industries grew 6.6 per cent.
Fertilisers, which account for 1.25 per cent of the IIP, registered contraction of 9.3 per cent in April, against 1.3 per cent contraction a year earlier.
Tarun Surana, an analyst with Sunidhi Securities, attributed the fall in fertiliser output to the fact that most phosphatic fertiliser units were not functioning due to unavailability of phosphoric acid. Also, a lean season resulted in units being closed for routine maintenance works.
The output of petroleum refinery products fell 2.8 per cent in April, while natural gas and crude oil production contracted 11.3 per cent and 1.3 per cent, respectively.
Growth in electricity generation slowed 4.6 per cent from 6.4 per cent in April 2011.
Coal, steel and cement output rose 3.8 per cent, 5.8 per cent and 8.6 per cent, respectively. In April 2011, the output of these had grown 2.7 per cent, 2.9 per cent and 0.1 per cent, respectively.
Economists said the poor performance of core sector industries pointed to an economic slowdown, adding the implications of this would be seen on the industrial production data for April, to be released on June 12.
“The core sector numbers are very poor. It would affect the IIP, and the economy as a whole,” said Dharmakirti Joshi, principal economist, CRISIL.
