Growth of eight core sectors slows down to 2.1% in July; these two were key concerns

By: |
Updated: September 2, 2019 5:43:06 PM

The growth of eight core sectors slowed down to 2.1 per cent in July as against 7.3 per cent in the corresponding month last year, government data released on Monday showed.

Contracts for the 32 blocks or areas won by state-owned Oil India Ltd (OIL) and Oil and Natural Gas Corp (ONGC) and private sector Vedanta Ltd in the latest auction were signed on Tuesday.The eight core industries  comprise just over 40 per cent of the weight of items included in the Index of Industrial Production (IIP).

The growth of eight core sectors slowed down to 2.1 per cent in July as against 7.3 per cent in the corresponding month last year, government data released on Monday showed. The decline was seen on account of heavy fall in coal and refinery industry. The eight core industries  comprise just over 40 per cent of the weight of items included in the Index of Industrial Production (IIP). The combined index of eight core industries stood at 31.9 in July 2019, which was 2.1 per cent higher as compared to the index of July 2018. Its cumulative  growth during April to July, 2019-20 was 3 per cent. While coal production fell by 1.4 per cent in July 2019 over July 2018, petroleum refinery production dipped by 0.9 per cent in July 2019 over July 2018.

According to the data released by the government on Monday, output of coal, crude oil, natural gas and refinery products recorded negative growth in July. During April-July, the eight sectors grew by 3 per cent compared to 5.9 per cent in the same period previous year.

The factory production rose at 2 per cent in June, showing a 3-month low on account of slowdown in the manufacturing sector. A growth of mere 1.2 per cent was seen in factory production in June 2019. The IIP growth rate stood at 3.1 per cent in May 2019 and 7 per cent in June 2018. The substantial growth in intermediate goods and consumer non-durables provided some relief amid the muted contraction in the other three major categories.

Also read: Farmers to earn more even after lower production, uneven monsoon this Kharif season

The Indian economy is also witnessing a slowdown of late and the corporate sector has even asked the government to come out with a stimuls package to revive the ailing economy at the earliest.

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Next Stories
1Asian factories lashed by trade wars, slowing demand in August
2In escalating trade war, US consumers may see higher prices
3Economists predict further growth cut, deeper interest-rate cuts amid GDP slump