India’s eight core industries grew by 5 percent in March against a 1 percent growth rate in February.
The growth, fastest in three months, was led by higher coal and steel production.
However, growth rate of the core industries was lower than 9.3 percent, recorded in March last year.
As per the government data released, coal production increased by 10 percent in March as against 2.5 per cent a year ago.
Steel (alloy + non-alloy) production was up 11 percent while it had expanded by 7.8 per cent in March 2016.
Electricity generation was up by 5.9 per cent. Crude oil and natural gas production was 0.9 percent and 8.3 percent respectively, on annual basis.
On the other hand, cement production declined by 6.8 percent in March this and also fertiliser output (-0.8 percent). There was also decline in production of refinery products (- 0.3 percent).
The core industries, which contribute 38 per cent to the total industrial production, had expanded by 1 per cent in February and 3.4 per cent in March.
The expansion was recorded at 5.6 per cent in December.
On cumulative basis, the infrastructure industries grew by 4.5 per cent last financial year ended March 2017, higher than 4 per cent recorded in the previous fiscal.
IIP Index: Know More- The Index of Industrial Production (IIP) is an index for India which details out the growth of various sectors in an economy such as mining, electricity and manufacturing.
- The all India IIP is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period with respect to that in a chosen base period.
- It is compiled and published monthly by the Central Statistical Organisation (CSO) six weeks after the reference month ends.
- The level of the Index of Industrial Production (IIP) is an abstract number, the magnitude of which represents the status of production in the industrial sector for a given period of time as compared to a reference period of time.
- The base year was at one time fixed at 1993–94 so that year was assigned an index level of 100.
- The current base year is 2004-05.
- The Eight Core Industries comprise nearly 38 % of the weight of items included in the Index of Industrial Production (IIP).
- These are Electricity , steel, refinery products, crude oil, coal, cement, natural gas and fertilisers.
