Core sector growth pull down to 3.4 pc in January

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New Delhi : The output of India's eight infrastructure industries last month increased by 3.4 per cent from a growth of 5.6 per cent reported in December 2016, official data showed.

The Eight Core Industries (ECI) index had reported a rise of 5.7 per cent in January 2016. The cumulative growth during April to January stood by 4.8 per cent.

The data which represents the output of major industrial sectors was released by the Ministry of Commerce and Industry. The ECI index comprises of nearly 38 per cent weightage of the items included in the Index of Industrial Production (IIP). 

The index includes sectors like coal, crude oil, natural gas, refinery products, fertilisers, steel (alloy and non-alloy), cement and electricity.

Electricity generation, which has the highest weightage of 10.32 per cent in the IIP, edged up by 4.8 per cent in January, as compared with the corresponding month of 2016.

Steel production, the second most important component with weightage of 6.68 per cent, increased by 11.4 per cent in the month under review.

However, distilling of refinery products, the third most important component as per weightage, inched down by 1.5 per cent in January, as compared with the corresponding month of last year.

Conversely, extraction of crude oil, which has a 5.22 per cent weightage in IIP, was slightly higher by 1.3 per cent during the month in consideration.

Coal mining, with a 4.38 per cent weightage, increased by 4.8 per cent in January.

In contrast, cement production, which has the weightage of 2.41 per cent, decreased by 13.3 per cent in January 2017 over the same month of 2016.

On the other hand, the sub-index for natural gas output, with a weightage of 1.71 per cent edged higher by 11.9 per cent during the month under consideration.

Fertiliser manufacturing, which has the least weightage of only 1.25 per cent declined by 1.6 per cent in January.