The growth in the output of eight core sector industries with a combined weight of 38% in the Index of Industrial Production (IIP) slowed to 2.7% in July from 5.3% in the same month last year. The data released by the ministry of commerce on Monday showed the slower pace of growth this July was mainly due to the negative growth in crude oil (-1%), natural gas (-9%), refinery products (-5.5%), fertilisers (-4.2%) and steel (-3.4%). However, the output of coal (6.2%), cement (16.5%) and electricity (11.2%) did relatively well.
The July core-sector figures came on the heels of overall GDP growth rate touching a two-and-half year high of 5.7% in the first quarter of FY15. Good growth was reported by financing, insurance, real estate and business service (10.4%), electricity, gas and water supply (10.2%), community, social and personal services (9.1%), construction (4.8%), agriculture (3.8%) and manufacturing (3.5%) in Q1 while the mining sector looked up after