Core sector output in 5 industries increases in Oct

The Dollar Business Bureau

The core sector output growth surged to a 6.6% in October, which is the highest since April. The combined Index of Eight Core Industries stands at 188.1 in October, 2016, which was 6.6% higher compared to the index of October, 2015. Its cumulative growth during April to October, 2016-17 was 4.9%.

Strong performance by 5 industries led by steel, refinery products, fertilizers, cement and electricity surged the growth to 6.6% which is good news for Indian manufacturing.

The Eight Core Industries comprise nearly 38% of the weight of items included in the Index of Industrial Production (IIP). 

Coal 

Coal production (weight: 4.38 %) declined by 1.6 % in October, 2016 over October, 2015. Its cumulative index during April to October, 2016-17 increased by 0.7 % over corresponding period of previous year.

Crude Oil

Crude Oil production (weight: 5.22 %) declined by 3.2 % in October, 2016 over October, 2015. Its cumulative index during April to October, 2016-17 declined by 3.3 % over the corresponding period of previous year.

Natural Gas

The Natural Gas production (weight: 1.71 %) declined by 1.4 % in October, 2016 over October, 2015. Its cumulative index during April to October, 2016-17declined by 4.0 % over the corresponding period of previous year.

Refinery Products (93% of Crude Throughput)

Petroleum Refinery production (weight: 5.94%) increased by 15.1 % in October, 2016 over October, 2015. Its cumulative index during April to October, 2016-17 increased by 8.9 % over the corresponding period of previous year.

Fertilizers

Fertilizer production (weight: 1.25%) increased by 0.8 % in October, 2016 over October, 2015. Its cumulative index during April to October, 2016-17 increased by 4.8 % over the corresponding period of previous year.

Steel (Alloy + Non-Alloy)

Steel production (weight: 6.68%) increased by 16.9 % in October, 2016 over October, 2015. Its cumulative index during April to October, 2016-17 increased by 8.5% over the corresponding period of previous year.

Cement

Cement production (weight: 2.41%) increased by 6.2 % in October, 2016 over October, 2015. Its cumulative index during April to October, 2016-17 increased by 4.8% over the corresponding period of previous year.

Electricity

Electricity generation (weight: 10.32%) increased by 2.8 % in October, 2016 over October, 2015. Its cumulative index during April to October, 2016-17 increased by4.7 % over the corresponding period of previous year.