The index of the output of eight core sectors grew 3.2 per cent in September against the same month last year. The growth was primarily due to an increase in fertilizer production, electricity generation and coal production, according to the Ministry of Commerce and Industry.
The core sector growth registered in September last year was 1.9 per cent. The output growth in September this year was also more than 2.6 per cent recorded in August.
The eight core industries — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity — account for 38 per cent of the total industrial production in the country.
According to CARE Ratings, the growth has not been broad-based and also the two main segments — steel and cement— have witnessed a drop in output. “Fertilisers production can be attributed to probably preparation for the Rabi sowing which is to have started from October end till December,” it said in a statement. “The Government spending has yet to get reflected in these numbers. A lot will depend on how the government’s finances turn out in next half of the year. While disinvestment target will not be met, tax revenue and dividend income could be increasing. It needs to be seen if it will be able to maintain its capex plans,” it added.
In September, fertiliser production grew 18.1 per cent versus the same month last year. The industry accounts for 1.25 per cent of the index of industrial production.
Electricity generation grew 10.8 per cent compared to the same month last year. The sector makes up for 10.32 per cent of the total industrial production.
Coal production increased 1.9 per cent during September. This was higher than 0.4 per cent growth registered in August. The sector makes up for 4.39 per cent in the total industrial production.
There was also a marginal increase in the output of refinery products and natural gas during September. However, crude oil output decreased.