Core sector recorded a 13-month high growth

Why it is in news?

According to data released by the Ministry of Commerce and Industry, activity in the eight core sectors of the economy accelerated to a 13-month high of 6.7% in November.

Statistics

•  The core industries index had grown by 5% in October. In November, the cement sector grew at a record high of 17.3% compared with a contraction of 1.34% in October.
• Steel sector grew 16.6% in November, highest in last one year and grown 8.44% in October 2017.
• The crude oil sector grew marginally in November, by 0.22%, climbing from a contraction of 0.42% in October.
• The coal sector slowed for the third consecutive month, contracting by 0.23% in November.
• Growth in the natural gas sector slowed in November to 2.4% compared with 2.9% in October. At the same time, growth in the refinery products sector quickened to 8.15% in November from 7.49% in October.
• Growth in the electricity sector similarly slowed to 1.85% in November from 3.24% in the previous month.
• For the fertilizers sector, growth slowed to 0.27% in November from 3% in October. The eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity constitute 40.27% of the total industrial production
• According to a policy adviser, the growth does not point to a recovery in construction, but more towards demand created by public sector investment, particularly in roads.

Core Sector :

• In most countries, there is a particular industry that seems to be the backbone of all other industries and that qualifies to be the core industry.
• The Eight Core Industries comprise nearly 38 % of the weight of items included in the Index of Industrial Production (IIP). The 8 core industries are as follows :
• Cement
• Coal
• Electricity
• Crude oil
• Refinery products
• Fertilizers
• Steel
• Natural gas

Source: The Hindu