Core sector growth slows at 2.4 percent, RBI review Tuesday

New Delhi, Feb 2:

Eight core industries such as coal, electricity, crude oil, cement and steel grew at 2.4 percent in December, compared to four percent in the same month last year, official data showed Monday on the eve of the Reserve Bank of India’s scheduled monetary policy review.

The index of eight core industries with a combined weightage of 37.90 percent in the Index of Industrial Production (IIP) with base 2004-05 stood at 172.7 in the month under review, the commerce and industry ministry said.

Electricity generation, which has 10.32 percent weightage in the IIP, grew 3.7 percent in December 2014 as compared to 7.6 percent in December last year.

Cement production grew 3.8 percent and coal production was up 7.5 percent.

However, steel production fell 2.4 percent from a growth of 10.4 percent in the corresponding month last year.

Crude oil and natural gas output also recorded negative growth, being respectively lower by 1.4 percent and 3.5 percent in the month under review.

Fertilisers also declined by 1.6 percent. Petroleum and refinery products were up 6.1 percent.

The core sector parameters are taken into account by the RBI while framing its monetary policy. IANS