Core Sector Loses Shine, Grows 5.2%.

The country's six key infrastructure industries grew 5.2% in April compared to 7.5% in the same month last year as the impact of higher interest rates and policy delays kicked in. The sector spanning crude, petroleum refinery products , electricity, cement and steel accounts for 26.7% of the index of industrial production (IIP) and is a key indicator of industrial growth. In 2010-11 , the core sector grew 5.8% compared to 5.5% in 2009-2010.

Government data released on Wednesday showed crude production grew 11% in April 2011 compared to a growth rate of 5.1% in April 2010 while petroleum refinery production rose 6.6% in April 2011 compared to growth of 5.3% in the same year-ago month. Coal production registered a growth of 2.9% in April 2011 compared to a decline of 2.9% in April 2010. Electricity generation grew 6.8 % in April 2011 compared to 6.9% in April 2010.

The key cement sector was a laggard declining 1.1% in April 2011 compared to a growth of 8.8% in April 2010. Steel production rose 4.3% in April 2011 compared to 12.9% in April 2010. The industrial sector has been witnessing a moderation in growth for the past few months. This is reflecting in the overall growth data. The government on Tuesday said the economy had grown 7.8% in the January-March quarter of 2010-11 , the slowest pace of growth in five quarters.

Source : timesofindia.indiatimes.com