A sharp drop in the production of steel, cement and refinery products resulted in a 0.1 per cent fall in the growth of the eight core industries in March, to its lowest rate in 17 months.
Production growth in the eight sectors in fiscal year 2014-15 was at 3.5 per cent, which was lower than the 4.2 per cent growth posted in the previous fiscal year, according to figures released by the Commerce & Industry Ministry on Thursday.
The eight core sectors are coal, crude oil, natural gas, refinery products, fertiliser, electricity, steel and cement and account for 38 per cent of the overall Index of Industrial Production.
Industry representatives are concerned that the fall in production in the core sectors indicates a slowdown in economic activity.
Industry concern “It is worrisome as growth has been witnessing a subsiding trend since November 2014. The lead indicators for the construction sector, such as cement and steel, are decelerating significantly, indicating a slowdown,” said Alok B Shriram, President, PHD Chamber, in a press statement.
In March 2015, steel production declined by 4.4 per cent, cement by 4.2 per cent and refinery products by 1.3 per cent. Coal production and fertiliser output, on the other hand, posted growth of 6 per cent and 5.2 per cent, respectively. Production in the remaining three sectors also posted a rise in March, albeit at lower rates. While natural gas production posted an increase of 1.5 per cent, both crude oil and electricity grew by 1.7 per cent each.
The previous low in the performance of core industries was a 0.6 per cent fall in production in October 2013.
In 2014-15, coal posted a growth of 8.2 per cent, electricity grew at 8 per cent, cement increased by 5.6 per cent, steel rose by 0.5 per cent and refinery products increased by 0.4 per cent.
Production of natural gas fell by 5.2 per cent, crude oil by 0.9 per cent and production of fertilisers by 0.1 per cent.