With the impact of more than seven-weeks of demonetisation, the growth in core sector, mostly comprising eight infrastructure sectors including coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, fell to 4.9 per cent in November 2016 as against 6.6 per cent in October. However, on an annual basis the eight core sectors reported a healthy growth over November 2015 figure of 0.6 per cent.
The growth rate of eight infrastructure sectors which contribute 38 per cent to the total industrial production, expanded 4.9 per cent in April-November 2016 compared to 2.5 per cent growth in the same period last financial year, according to data released by the Commerce and Industry Ministry on Monday.
Commenting on the data, rating agency ICRA said while the favourable base effect and healthy production in the core and other organised sectors may support the growth of the Index of Industrial Production (IIP) in November 2016, ‘the early evidence of the impact of the note ban on several unorganised sectors appears to be negative’.
Coal, steel, electricity production jumped 6.4 per cent, 5.6 per cent and 10.2 per cent, respectively. Refinery and cement output growth stood at 2 per cent and 0.5 per cent, respectively, in November 2016, against 1.7 per cent and (-)1.7 per cent in November 2015. However, crude oil and natural gas production contracted by 5.4 per cent and 1.7 per cent, respectively.