Fall in crude oil output, stagnant electricity sector performance weigh on numbers
The growth of eight core industries slowed down to 2.1 per cent in February largely due to a fall in crude oil and petroleum refinery production and stagnant performance of the electricity sector.
The overall-growth of the eight core sectors, which also include coal, natural gas, fertiliser, steel and cement, in the April-February 2018-19 period, was 4.3 per cent. The sectors had expanded to 5.4 per cent in February last year.
According to Madan Sabnavis, Chief Economist, CARE Ratings: “While the base effect is a part of the explanation (for slowdown), it is also true that this has not held back growth in cement and steel which contended with the same base effect. Quite clearly in the infrastructure space there is limited activity which is being spear-headed by the government especially in roads, railways and urban development. Private sector involvement remains fragile as of now.”
