 "Core sector output worst in 52 months; MPC may cut rates to prop up growth")
Production of eight infrastructure sectors expanded by 3.8 per cent in December 2021 against a 0.4 per cent contraction in the same month last year on better show by coal, cement and refinery products, according to the official data released on Monday.
Barring crude oil and steel, all sectors recorded positive growth in December 2021. The core sector industries had grown by 3.4 per cent in November 2021.
The growth rate of the eight infrastructure sectors -- coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity -- stood at 12.6 per cent during April-December this fiscal as against a negative growth of 9.8 per cent during the same period last fiscal.
According to the data, production of coal rose by 5.2 per cent, natural gas by 19.5 per cent, refinery products by 5.9 per cent, fertilisers by 3.5 per cent, cement by 12.9 per cent, and electricity by 2.5 per cent in December.
The output of crude oil and steel declined by 1.8 per cent and 1 per cent respectively during the period under review.
Commenting in the data, ICRA Ltd Chief Economist Aditi Nayar said, "We expect the IIP to report a feeble rise of less than 2 per cent on a YoY basis in that month, and print below the expansion displayed by the core sector for the fourth consecutive month".
The eight core industries hold 40.27 per cent weight in the Index of Industrial Production (IIP).
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