Infrastructure growth dips in March
Core sector output at 17-month low; cement, steel, refinery production dips
By : DC Correspondent
Update: 2015-05-01 07:05 GMT
New Delhi: India’s infrastructure growth slipped to its lowest level in 17 months in March due to a steep decline in production of steel, cement and refinery products. Eight core industries growth contracted to 0.1 per cent in March against a growth 1.4 per cent in February.
It had grown by four per cent in March 2014. Eight core industries co-mprise nearly 38 per cent of the index of industrial production (IIP). For the full 2014-15 fiscal, the production growth of eight sectors also slowed down to 3.5 per cent, from 4.2 per cent in the previous financial year ended in March 2014.
In March, the growth in these eight sectors contracted by 4.4 per cent. The cement sector witnessed a negative growth of 4.2 per cent in March against a positive growth of 2.7 per cent in February. Natural gas production witnessed a contraction of 1.5 per cent in March. Natural gas has seen a contraction in the whole of 2014-15. The contraction in March in natural gas production was lowest in the whole of 2014-15. Refinery production also witnessed a contraction of 1.3 per cent in March against a negative growth of one per cent in February.
However, coal production rose by 6 per cent against 11.6 per cent growth in February. Fertiliser production saw a positive growth of 5.2 per cent against 0.4 per cent contraction in February. Electricity and crude oil both witnessed a positive growth of 1.7 per cent in March.
“Decline in core infra sectors is worrisome as the growth has been witnessing a subsiding trend since November 2014,” said Alok B. Shriram, president, PHD Chamber. At this juncture, there is a strong need to push the dynamic policy regime by the government at the ground level to refuel demand especially in the rural areas, he said.