As per the official data released on 31 May 2012, the growth rate of
eight core infrastructure industries dipped to 2.2 per cent in April
2012 from 4.2 per cent in April 2011. The eight core sectors — crude
oil, petroleum refinery products, coal, electricity, cement and finished
steel has a weight of 37.9 per cent in the Index of Industrial
Production (IIP). The dip in the growth of the core sector industries
was attributed to poor performance by sectors such as natural gas, crude
oil and fertilizers.
The overall infrastructure sector growth for March 2012 was revised
downwards to 2.2 per cent as compared to a healthier 6.5 per cent
expansion witnessed in the same month last year. Also, the cumulative
growth of infrastructure industries was found to have slipped to 4.4 per
cent, which is significantly lower than the 6.6 per cent increase seen
in 2010-11.
As per the data released by the CSO, natural gas and crude oil output
during April 2012 fell by 11.3 per cent and 1.3 per cent, respectively.
Petroleum refinery products and fertiliser production also witnessed
negative growth rates, contracting by 2.8 per cent and 9.3 per cent in
April 2012. Slowdown in electricity generation was also witnessed in
April. Electricity generation grew at a lower pace of 4.6 per cent
during the month as compared to 6.4 per cent in April 2011.
However, three sectors- coal, steel and cement were noted to have
fared better as compared to 2011. While coal production went up by 3.8
per cent in April 2012 as compared to an increase of 2.7 per cent
witnessed in April 2011, the output of steel and cement grew by a
healthy 5.8 per cent and 8.6 per cent during April 2012 as compared to
negative growth rates of (-) 2.9 per cent and (-) 0.1 per cent witnessed
by the two sectors in the corresponding period of 2011.
