Core sector growth hits 13 month high
The country’s infrastructure sector output growth rose to a 13-month high in November on the back of robust performance by the steel and cement sectors, which should augur well for overall industrial growth.
Data released by the commerce and industry ministry on Monday showed annual growth rate in the core sector —spanning coal, cement, steel, fertiliser, electricity, refinery products, natural gas and crude oil — hit 6.8% in November, faster than the previous month’s 5% and higher than the 3.2% recorded in November 2016. Cumulative growth during April to November was 3.9%. The core sector accounts for 40.3% of the Index of Industrial Production (IIP) and is a pointer to the performance of the sector, data for which will be released later in the month.
“A favourable base effectled spike in the expansion of cement and steel contributed to the uptick in growth of the core industries to a 13-month high 6.8% in November 2017, even as four of the eight industries (coal, natural gas, fertilisers and electricity) recorded a sequential dip in growth,” said Aditi Nayar, principal economist at ratings agency ICRA.