Core sector growth slows to 2.4 % in Dec

Core sector growth slows to 2.4 % in Dec 




 Growth in eight core industries slowed to three-month low of 2.4 per cent in December last year, adding to clamour(make loud demand) for a rate cut by the Reserve Bank of India on Tuesday. 
 Negative growth in crude oil, natural gas, fertilizer and steel has led to the dip in the overall growth rate of core industries.
 The eight core sector industries — coal, crude oil, natural gas, refinery products, fertilizer, steel, cement and electricity — had expanded by 4 per cent in December, 2013.
 The growth was 6.7 per cent in November, 2014.
 The core sector contributes 38 per cent to the overall industrial production, a parameter that the RBI takes into account while framing its monetary policy.
 Coal production grew by 7.5 per cent, refinery products by 6.1 per cent and cement by 3.8 per cent.
 Growth in electricity generation declined to 3.7 per cent from 7.6 per cent.
 During April-December, the eight sectors grew by 4.4 per cent as against 4.1 per cent in the same period last year.
“We should look at the core sector data over a longer time period rather than monthly estimated data as it may not be representative... Industry is already showing imminent signs of pick-up. 
“With a continued policy push by the government in steel intensive areas like infrastructure, the domestic steel demand is expected to increase,” said SAIL Chairman C. S. Verma. — PTI