The output of 8 core industries has contracted by 2.5 % in February as against a growth of 3.1% in January and 7.7 per cent growth in February 2012. It marks the weakest performance by the 8 core industries having a 37.9 % weight in the Index of Industrial Production (IIP).
The January 2013 figure has also been revised downwards to 3.1 % from the earlier 3.9 %. All this points to the weak industrial growth in February 2013, the data for which is to be released on April 12. The February performance of the 8 core industries was hit by contraction in five of the eight industries.
The five sectors that saw a decline are coal (8 %), crude oil (4 %), natural gas (20 %), fertilisers (4 %) and electricity (4.1 per cent). The other three core industries — cement (3.9 per cent), steel (0.5 per cent) and refinery products (4.3 %) recorded growth in output during February 2013.
The weak performance in February coupled with the sharp fall in India’s manufacturing Purchasing Managers’ Index (PMI) for March (from 54.2 to 52) is a signal that growth recovery may be further delayed, economist say.