Core sector industries grow by 0.4% in June
Coal mining and cement production sectors were the worst performers
NEW DELHI, JULY 31:
Ahead of the meeting of the Monetary Policy Committee (MPC) on Tuesday, latest official data of core industries shows a further slowdown in production that could also have an impact on factory output.
The index of eight core industries grew by a meagre 0.4 per cent in June this year as against a growth of 4.1 per cent in May. It had grown by a robust 7 per cent in June last year.
The data, released on Monday showed that the worst performers were coal mining and cement production that contracted by 6.7 per cent and 5.8 per cent respectively in the month. Fertiliser production also dipped by 3.6 per cent in June. Production of natural gas registered a growth of 6.4 per cent in June as against a year ago, while steel production grew by 5.8 per cent. “The cumulative growth of the eight industries during April to June, 2017-18 was 2.4 per cent,” said an official release.
The Eight Core Industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).
With retail and wholesale inflation at an all time low, industry and the Finance Ministry is hoping for at least a 25 basis point reduction in the benchmark rate. The MPC, led by Reserve Bank of India will announce its decision on Wednesday.