June core infra grows at 0.1%

June core infra grows at 0.1%

The core infrastructure grows to 0.1% (Y-O-Y) in June 2013 as compared to 2.3% (Y-O-Y) in May 2013. The decline in the growth rate in June, 2013 was mainly on account of negative growth witnessed in the production of coal, crude oil, natural gas and electricity. 

   Sector wise trend in monthly production                                         (% growth)

Sector	Weight in IIP	June’13	May’13
Crude Oil	5.22	(-)0.6	(-) 2.4
Natural Gas	1.71	(-)16.7	(-) 18.7
Petroleum Refinery Products	5.94	2.3	5.5
Coal	4.38	(-)3	(-) 3.3
Fertilizer	1.25	11.3	(-) 2
Electricity	10.32	(-)1.2	6.2
Cement	2.41	2.3	2.4
Steel	6.68	3.4	4
Overall	37.90	0.1	2.3

  Source: PHD Research Bureau, compiled from the office of the economic advisor to the Govt. of India

In cumulative terms core infrastructure industries registered a growth of 1.6% during Apr-June 2013-14 as against 6.9% during the corresponding period of previous year.

    Sector wise trend in production                                                                                         (% growth)  

Sector	Weight	Apr-June 2013-14	Apr-June 2012-2013
Crude Oil	5.22	(-)1.4	(-)0.6
Natural Gas	1.71	(-)17.6	(-)11
Petroleum Refinery Products	5.94	4.6	23.5
Coal	4.38	(-)1.1	8
Fertilizer	1.25	2.5	(-)12.2
Electricity	10.32	2.8	6.7
Cement	2.41	3.3	12.5
Steel	6.68	3.1	3.4
Overall	37.90	1.6	6.9

  Source: PHD Research Bureau, compiled from the office of the economic advisor to the Govt. of India

Electricity generation grew by 2.8% during Apr–June 2013-14 as against 6.7% growth during Apr–June 2012-13, while steel production grew by 3.1% during Apr–June 2013-14 as against 3.4% during Apr-June 2012-13. The production in crude oil grew by (-) 1.4 % during Apr–June  2013-14 as compared to its growth at (-) 0.6% during Apr–June  2012-13, whereas petroleum refinery production registered a growth of 4.6% during Apr–June 2013-14 as compared to 23.5% growth during Apr–June 2012-13. Fertilizer production grew by 2.5% during Apr–June 2013-14 compared to its growth at (-) 12.2% during Apr–June 2012-13 and cement production grew by 3.3% during Apr–June 2013-14 compared to its growth at 12.5% during Apr–June 2012-13.

Trend in growth of steel, cement, electricity, coal and overall                                         (%)

Source: PHD Research Bureau, compiled from the office of the economic advisor to the Govt. of India

Warm regards,

Dr. S P Sharma

Chief Economist