Home World Business Core sector growth rebounds in March to 5% from 1% in Feb

Core sector growth rebounds in March to 5% from 1% in Feb

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Robust steel and coal production pushes up March numbers

output rose by 5 per cent in March, recovering from the one year low growth rate of 1 per cent in the previous month of February.

The rebound in growth was primarily led by robust growth in the steel and output supported by a stable rise in natural gas.

Data released by the Commerce and Industry Ministry on Monday also showed that the eight core industries – coal, crude oil, natural gas, refinery products, fertiliser, steel, and – had cumulative growth of 4.5 per cent in the last financial year.

This was higher than the corresponding 4 per cent rise in the in the year before of 2014-15.

Contributing 38 per cent to the total industrial production, output had dipped in February mainly due to decline in output of a majority of sectors including crude oil, natural gas, refinery products, fertilisers and

In March however, continuing the growth momentum, steel output rose by 11 per cent in March up from the 8.7 per cent rise in February. Also, contraction in output slowed down to 6.8 per cent from a high 15.8 per cent contraction in February.

“Notwithstanding the considerable improvement relative to the previous month, the 6.8% contraction in output in March, signals that the construction sector is yet to fully recover from the disruption that had set in after the note ban.” Aditi Nayar, Principal Economist, ICRA said.

On the other hand, bagging the second highest growth rate of 10 per cent, production has also risen from the 7.1 per cent growth seen in the previous year.

This has managed to fire up activity across the based plants with generation also up by 5.9 per cent as compared to the 1.9 per cent growth in February.

The position of both and refinery products also improved albeit slowly.

While turned up a positive growth of 0.9 per cent in March after a 3.4 per cent fall in the previous month, production of refinery products fell by 0.3 per cent, slowing down from the 2.3 per cent rate of fall earlier.

Finally, fertilizer production continued to fall for the fourth straight month, contracting by 0.8 per cent in March.

A pickup in expansion of auto production, output and merchandise exports in March signals that IIP growth would revive relative to the 1.2 per cent contraction recorded in February, ICRA said.

Core sector growth rebounds in March to 5% from 1% in Feb

Robust steel and coal production pushes up March numbers

Robust steel and coal production pushes up March numbers output rose by 5 per cent in March, recovering from the one year low growth rate of 1 per cent in the previous month of February.

The rebound in growth was primarily led by robust growth in the steel and output supported by a stable rise in natural gas.

Data released by the Commerce and Industry Ministry on Monday also showed that the eight core industries – coal, crude oil, natural gas, refinery products, fertiliser, steel, and – had cumulative growth of 4.5 per cent in the last financial year.

This was higher than the corresponding 4 per cent rise in the in the year before of 2014-15.

Contributing 38 per cent to the total industrial production, output had dipped in February mainly due to decline in output of a majority of sectors including crude oil, natural gas, refinery products, fertilisers and

In March however, continuing the growth momentum, steel output rose by 11 per cent in March up from the 8.7 per cent rise in February. Also, contraction in output slowed down to 6.8 per cent from a high 15.8 per cent contraction in February.

“Notwithstanding the considerable improvement relative to the previous month, the 6.8% contraction in output in March, signals that the construction sector is yet to fully recover from the disruption that had set in after the note ban.” Aditi Nayar, Principal Economist, ICRA said.

On the other hand, bagging the second highest growth rate of 10 per cent, production has also risen from the 7.1 per cent growth seen in the previous year.

This has managed to fire up activity across the based plants with generation also up by 5.9 per cent as compared to the 1.9 per cent growth in February.

The position of both and refinery products also improved albeit slowly.

While turned up a positive growth of 0.9 per cent in March after a 3.4 per cent fall in the previous month, production of refinery products fell by 0.3 per cent, slowing down from the 2.3 per cent rate of fall earlier.

Finally, fertilizer production continued to fall for the fourth straight month, contracting by 0.8 per cent in March.

A pickup in expansion of auto production, output and merchandise exports in March signals that IIP growth would revive relative to the 1.2 per cent contraction recorded in February, ICRA said.

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Subhayan Chakraborty

Business Standard

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