Core sector growth down to 2.3% in April

New Dehli, june 1 –  The key infrastructure sector continued to remain sluggish in April with three segments posting a decline. Data released by the commerce and industry department on Friday showed the sector rose an annual 2.3% in April, slower than the 5.7% recorded in the same year earlier month. The April number was also slower than the previous month's upwardly revised 3.2% expansion.

 

The sector, which spans crude oil, natural gas, fertiliser, coal, steel, cement , electricity and petroleum refinery, has a 37.9% weight in the index of industrial production and has a crucial influence on the outcome of the industrial data. The industrial sector has been hit hard by high input prices, stubborn inflation, high interest rates, slowing demand and investment and delay in implementing projects. The global economic slowdown and its impact on the country's exports have also hurt.

 

Industrial output rose a paltry 1% in 2012-13 hurting overall economic expansion prompting calls for urgent steps to revive the crucial sector. Crude oil, natural gas and fertilisers sectors fell in April. Crude Oil production fell 1.2% in April, 2013 compared to a decline of 1.4% growth in April, 2012. Natural gas production fell 17.4% in April compared with a decline of 11.3% in April 2012, while fertilizer production declined 2.4% in April, compared with a fall of 9.3% in April, 2012.

TNN