Friday, April 4, 2008

Core Sector Grows By 8.7% In February

NEW DELHI: The output of six core industries grew by 8.7% in February 2008, indicating a possible revival of growth in industrial production. However, the cumulative expansion during April-February 2007-08 was slower at 5.6% against 8.7% in the comparable period a year ago due to sluggish performance in previous months.

The growth has more than doubled in February from a mere 4.2% in January. Asian Development Bank has projected the Indian economy growth will moderate to 8% this fiscal from 8.7% in FY’08.

In February, coal industry growth improved to 11.7% from 6.5%, power to 9.6% from 3.3% and cement to 12.4% from 5.8% in corresponding month of the previous year, according to official data released by the government. However, crude oil dropped to 2.3% in the month under review from 4.9% in the same month last year, petroleum refinery products to 5.8% from 11.3% and finished steel to 8.2% from 13.6% a year ago.

Higher interest rates, a slowdown in the capital goods sector and slackening demand for consumer durables had pulled the core sector growth in January to 4.2% as compared to 8.3% last year.

These industries, including steel, crude petroleum and petroleum refinery products, carry 26.68% weightage in the Index of Industrial Production.

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