Electricity and fertilizers production records double-digit growth
The Eight Core Industries, having a combined weight of 37.90 % in the Index of Industrial Production (IIP), recorded a 4.2 % increase in output during April 2014.Coal production increased 3.3 %, while the electricity generation increased 11.2% in April 2014 over April 2013. The production of fertilizer increased 11.1%, while that of steel and cement also galloped 3.1% and 6.7% in April 2014.
However, the output of crude Oil declined 0.1 %, while that of the natural gas and petroleum refinery also dipped 7.7% and 2.2% in April 2014.
Commenting on the core infrastructure data, Aditi Nayar, Sr. Economist, ICRA, said, "Notwithstanding the pickup in core sector growth, IIP growth for April 2014 is expected to print sub-1%. Although sentiments have improved dramatically since the strong verdict in the Parliamentary elections, a sustained and broad-based improvement in manufacturing growth still appears to be some months away. Moreover, mining sector growth would take a cue from resolution of issues related to land acquisition, clearances, renewal of leases, ramping up of evacuation facilities etc."
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