Growth of output in India’s eight core industrial sectors was up 4.5 per cent in February compared to the same month last year, propped by strong performance in electricity generation, followed by steel and petroleum refinery products.
Natural gas and fertilisers, however, posted a decline in production while coal production remained stagnant. Cement and crude oil output, too, grew at a sluggish pace during the month.
Cumulative growth of output in the eight sectors in April-February 2013-14 was 2.6 per cent, according to data released by the Government on Monday. The index of eight core industries grew 1.6 per cent in January.
Industry body Assocham attributed the “skewed’’ performance in the eight core sectors to nagging policy issues linked to the pricing of gas and coal, problems associated with the power distribution policy and continued monopoly of public sector in coal production.
The new Government needs to initiate a comprehensive review of not only policies but also processes that govern core industries, Assocham said.
The eight core industries have a combined weight of 37.90 per cent in the Index of Industrial Production (IIP).
Electricity generation, which grew at 10.4 per cent in February compared to February 2013, contributed the most to the growth in output of core industries.
The electricity sector (with a weight of 10.32 per cent in the IIP) registered a cumulative growth of 5.7 per cent in April-February 2013-14.
Steel production recorded a growth rate of 4.8 per cent during the month. The cumulative growth during April to February, 2013-14 was 4.2 per cent over the corresponding period of previous year.