Core industries' growth rate drops to 2.1%

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New Delhi: Days after a six-year-low growth rate of 5 per cent was reported for the first quarter of F20, official statistics have revealed that the growth of eight core industries dropped to 2.1 per cent in July.

This is mainly due to a contraction in coal, crude oil, natural gas and refinery products, according to an official data.

The eight core sector industries - coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity - had expanded by 7.3 per cent in July last year.

According to the data released by the government on Monday, output of coal, crude oil, natural gas and refinery products recorded negative growth in July.

During April-July, the eight sectors grew by 3 per cent compared to 5.9 per cent in the same period previous year.

However, the index of eight core industries in July was higher compared with June, when it rose by just 0.7 per cent.

The eight core industries, comprise 40.27 per cent of the weight of items included in the index of industrial production (IIP), which details out the growth of various industrial sectors in an economy.

(With inputs from PTI and IANS.)

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