Image has been used for representational purpose only. , Photo Credit: PTI
Output growth in India’s eight core sectors fell from 7.2% in February to a five-month low of 3.6% in March, electricity and cement output declined from a year earlier and crude oil output declined for the tenth month in a row fallen.
Coal production rose 12.2% in March, while fertilizer and steel production rose 9.7% and 8.8% respectively – relatively slower than in recent months, according to data released by the Ministry of Commerce and Industry on Friday.
For the full financial year 2022-23, core sectors report a growth of 7.6% as compared to 10.4% in 2021-22, with all sectors reporting higher production except crude oil, which declined by 1.7% during the year Went.
In March, growth in natural gas production slowed to 2.8%, the slowest in three months, while refinery products rose at a four-month low of 1.5%.
cement production fell
Cement production contracted 0.8% in March, breaking the streak of continuous growth in the last four months. Electricity production fell for the first time in at least a year, shrinking 1.8% in March.
However, absolute production levels in both these sectors were significantly higher than in February – with the cement production index at its highest point since April 2022 and electricity production at its highest since September 2022.
Read also: Core sector grew 7.4% in December; Fastest speed in 3 months
“Output of some sectors like power and cement is likely to be hit by unseasonal rains in March,” said Aditi Nayar, chief economist at ratings firm ICRA.
With most available high-frequency indicators weakening in March 2023 on a year-on-year basis compared to February 2023, Ms. Nair expects index of industrial production (IIP) growth to slow to around 3% to 4% in the month. Will happen from 5.6% in February. The eight core sectors account for a little over 40% of the IIP.
“The final growth rate of the Index of Eight Core Industries for December 2022 has been revised to 8.3% from its provisional level of 7.4%,” the ministry said. also amended February growth rate from 6% to 7.2% prior guess.