Core sector output released on Friday showed that the eight industries that constitute the sector grew at a slower pace of 3% in June as against a six month high of 4.4% in May.
Even as industry called for another rate cut ahead of the Reserve Bank of India’s (RBI) monetary policy review on August 4 to revive the economy, data on core sector output released on Friday showed that the eight industries that constitute the sector grew at a slower pace of 3% in June as against a six month high of 4.4% in May.
Growth in these industries’ output — which have a combined weight of 38% in the index of industrial production — was as high as 8.7% in June 2014. The growth of these industries’ output had hit an 18-month trough of -0.4% in April, 2015 a month when industrial output growth beat expectations to touch a two-month high of 4.1%.
Month-on-month data shows that barring fertilisers and steel (cement production grew 2.6% in June, the same as in May), all the others grew at a slower pace or showed contraction in June.
The coal sector grew at 6.3% in June (as against 7.8% in May and 8.2% in June 2014), while crude oil growth shrank by 0.7% (as against 0.8% growth in May and a flat growth in June 2014). Growth in natural gas production contracted 5.9% in June as against contractions of 3.1% in May and 1.7% in June 2014.
Growth in the output of refinery products also slowed to 7.5% as against 7.9% in May (but much higher than -0.1% in June 2014), while fertiliser production was up 5.8% (against 1.3% in May and -1% in June 2014) and steel output was higher at 4.9% (as against 2.6% in May, but lower than 12% in June 2014). Electricity production slowed to 0.2% in June (as against 5.5% in May and 15.7% in June 2014).