Eight Core Industries Saw 1.7% Growth In November 2013

On the evening of December 31, 2013, the Ministry of Statistics and Programme Implementation (MOSPI) came out with data for 8 core industries for the month of November 2013. These industries saw an expansion of 1.7% as against a contraction of 0.6% in October 2013. In the same period last year, expansion was seen at 5.8%.

Of the 8 sectors, viz. Coal, Crude Oil, Natural Gas, Refinery Products, Fertlisers, Steel, Cement and Electricity, all the sectors barring Natural Gas and Refinery Products witnessed growth in output. Output in these two sectors contracted by 11.3% and 5% respectively. Coal output returned to the positives, showing growth of 2.3% in November after a contraction of 3.9% in October. Crude oil output also bounced back, from 0.8% contraction in October to 1.1% growth in November. Fertilisers grew 0.6%, while steel, cement and electricity sectors grew 3.9%, 4.2% and 5.9% respectively on a year-on-year basis in the month of November 2013.

Core sector output grew 2.5% during April-November as compared to 6.7% in the same period last year, the Ministry said. The 8 core industries together account for 37.9% weight in the Index of Industrial Production (IIP). Therefore, we should not expect any fireworks from the IIP numbers, and can expect them to remain muted for November.