Output growth of India’s Core sector slows to 4.9% in November 2016

Output growth of India’s Core sector slows to 4.9% in November 2016

India’s core sectors including coal, steel and electricity, register a growth of 4.9% in November 2016. However the rate of growth was smaller in comparison to the growth in October 2016 mainly due to the crash crunch caused by demonetization.  As per the data released by the Commerce and Industry

Ministry on January 2, 2017, the growth rate of eight infrastructure sectors comprising coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity was 6.6% in October 2016.

The Refinery output grew just 2%, compared with a growth of 15.1% in October. Cement output fell sharply and rose a mere 0.5% in November after a 6.2% rise in October. Coal rose at 6.4% after three continuous months of decline. Electricity production grew the fastest at 10.2%, up from 2.8% growth in October. The Steel output expansion also slowed to 5.6% from 16.9% in October.

Fertiliser output rose 2.4% in November, compared to a mere 0.8% growth in October. Crude oil and Natural gas continued to fall at 5.4% and 1.7%, respectively.